French oil and gas giant TOTAL S A has acquired a 37.4 per cent stake in Gautam Adani's Adani Gas for Rs 5,152 crore to create one of India's largest downstream energy partnerships.
TOTAL, the world's second-largest LNG company, has purchased 37.4 per cent, or 41.13 crore, shares in Adani Gas through a tender offer to public shareholders of the company under the SEBI Regulations, 2011.
As per the exchange data, Total Holdings SAS bought shares from five promoter entities of Adani Gas for Rs 5,152 crore through open market transactions. Adani Tradeline, Afro Asia Trade and Investments, S B Adani Family Trust, Universal Trade and Investments and Worldwide Emerging Market Holding, sold a total of 40.76 crore shares for around Rs 125 per share."The company has been informed that the transaction has been completed in accordance with the sales and purchase agreement (SPA). Accordingly, the company wishes to inform that the shareholders' agreement (SHA) has come into full force and effect," Adani Gas said in a filing to the Bombay Stock Exchange.
Earlier in October 2019, Adani and TOTAL had signed definitive agreements for developing multi-energy offerings to the Indian energy market. "TOTAL would purchase 37.4 per cent shares in Adani Gas through a tender offer to public shareholders to acquire up to 25.2 per cent shares subject to applicable regulations and purchase the residual shares from Adani Family," Adani group firm had said.
Under the agreement, the Adani family and TOTAL SA shareholders will ultimately hold 37.4 per cent each and public shareholders the remaining 25.2 per cent.
The partnership and equity support from the partners will help Adani Gas accelerate project executions in all its new geographical areas.
As part of the existing joint venture, Adani and Total in the coming years will target to build a fuel retail network of 1,500 retail stations, on the main roads of the country, such as highways and intercity connections.
"Adani Gas will also be setting up 1,500 CNG stations for gas distribution over the next 10 years in its and its joint ventures' geographical areas across 71 districts, 68 towns across 15 states in India," the company had said.
In addition, Adani Gas and its joint venture will distribute gas to 60 lakh households in the next decade. Adani Gas CNG network will be developed exploring synergies including co-location of fuel retail and CNG outlets, it said.
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 per cent of India's population.
On BSE, shares of Adani Gas closed Friday trade at Rs 133.9 apiece, down 9.04 per cent.