Total to invest in Adani Gas, stock surges

Adani Gas on Monday announced that Total, world’s second largest LNG player, will buy 37.4 per cent stake in Adani Gas. With response to this development the stock of Adani Gas surged on the bourses to touch the intra-day high of Rs. 162.40, up by 19 per cent.

Total will tender an open offer to public shareholders to acquire up to 25.2 per cent and purchase the residual shares from Adani Family. After the execution of this, both Total and Adani Family will hold 37.4 per cent each and rest will be with public. The financial details about the deal were not disclosed by the company.

The company further said that this deal will help Adani Gas Limited speed-up project executions in all its new geographical areas. According to the company, significant synergies would be explored between gas distribution, fuel retail and LNG businesses.

Adani Gas has existing JV with Total to import and retail natural gas, and as a part of this partnership, Adani Gas is looking to build strong fuel retail network of 1500 stations across 15 states in India.

This deal indicates that the company is looking to capitalise the opportunity arising from government’s impetus for natural gas. The government aims to take the share of natural gas in India’s fuel consumption mix to 15 per cent by 2030 from present 6.2 per cent.

At 12.43 hours, the stock was trading at Rs. 154.50, up by 12.3 per cent from previous close.