Shares of Adani Gas rallied 7 per cent after reports that the Fench energy giant Total SA is close to buying 30 per cent stake in the company for more than Rs 5,500 crore. The deal is likely to be done at a premium to the current price. Today, the shares of gas distribution company had opened at Rs 175 against the previous close of Rs 168.55 per share. The acquisition deal may lead to an open offer to public shareholders of Adani Gas, which got listed on the bourses only six months back. Post the transaction, the French energy company Total will have nearly an equal stake in the company as billionaire promoter Gautam Adani, according to media reports.
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The deal would help Adani Gas in paring its debt and bring in strategic expertise into an expanding business, as per reports. Currently, Gautam Adani owns around 75% stake in the gas company. Adani Group and Total had entered into a strategic partnership in October to develop diverse regasification LNG terminals including Dharma LNG and a joint venture to set up 1,500 service stations.
Adani Gas is an arm of Adani Group that operates a distribution pipeline network of over 6,000 km and caters to nearly 350,000 retail customers. The company runs gas distribution in five geographies Ahmedabad, Baroda, Faridabad, Khurja and Palwal. The company, through its JV with Indian Oil Corporation, is also present in another eight locations including Chandigarh and Ernakulam. Adani Gas reported an increase in operating revenues by 32 per cent to 1,823 crores for the financial year 2018-19, with an increase of 39 per cent in its profits after tax at Rs 229 crore.