French Energy Giant TOTAL To Acquire Stake In Adani Gas
TOTAL signed final agreements to buy Adani Gas shares through a tender offer to the company's public shareholders
French oil and gas giant TOTAL acquired a 37.4 % stake in Gautam Adani Gas for USD 746.67 million to establish one of the most significant downstream energy collaborations in India. TOTAL Holdings SAS purchased the stake from several Adani Group companies through the deal, which includes Adani Tradeline, Universal Trade and Investments, Afro Asia Trade and Investments, S B Adani Family Trust, and Worldwide Emerging Market Holding.
TOTAL had revealed its intentions in October 2019 to buy Adani Group's stake in Adani Gas through a combination of open offer and promoter acquisition. However, the deal earns the Petroleum and Natural Gas Regulatory Board (PNGRB) 's approval on 21 February 2020. According to Adani Gas, TOTAL has been informed that the contract has been completed following the sales and purchase agreement (SPA). The company wishes to report that the shareholder's agreement (SHA) has come into full force and effect, after filing to the Bombay Stock Exchange.
According to Adani Group, earlier in October 2019, Adani and TOTAL had signed definitive agreements for developing multi-energy contributions to the Indian energy market. TOTAL would purchase 37.4 % shares in Adani Gas by a tender offer and public shareholders to acquire up to 25.2 % shares subject to applicable regulations and buy the remaining shares from Adani Family.
Under the agreement, the Adani family and TOTAL SA shareholders will ultimately hold 37.4 % each and public shareholders the remaining 25.2 %. Deal with TOTAL and equity support from the partners will help Adani Gas accelerate project executions in all its new geographical areas. As part of the current joint venture, Adani and TOTAL will aim to build a fuel distribution network of 1,500 retail stations on the country's main roads, such as highways and intercity connections, in the coming years.
The Adani Gas revealed the plan for setting up 1,500 CNG stations for gas distribution over the next ten years in its and its joint ventures geographical areas across 15 states, 71 districts, 68 towns in India. Adani Gas and its joint venture will distribute gas to 6 million households in the next decade. Adani Gas CNG network will be developed exploring synergies, including the co-location of fuel retail and CNG outlets. The due will also develop regasification terminals, including Dhamra LNG, on the East coast of India; market LNG to the Indian markets and through Adani Gas, target to distribute gas to 7.5 % of India's population.
