Shares of Adani Gas zoomed 18 per cent to Rs 162 on the BSE in early morning trade on Monday after the company said French energy giant Total SA would acquire 37.4 per cent stake in it. The stock was trading close to its 52-week high of Rs 184 touched on June 4, 2019.
“Total will 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 Gas said in a regulatory filing. READ FILING HERE
Adani Family and TOTAL SA shareholders shall ultimately hold 37.4 per cent each and public shareholders shall hold remaining 25.2 per cent.
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Adani and TOTAL, the company said, have signed definitive agreements to deepen their existing partnership and commitment for developing multi-energy offerings to the Indian energy market. The acquisition is the "largest foreign direct investment in India’s city gas distribution (CGD) sector".
"CGD is a natural extension of the plans of both partners to invest in infrastructure and assets worth over $1 billion, which span Liquefied Natural Gas (LNG) infrastructure and marketing and fuel retail business, announced in October 2018," the company said.
The partnership and equity support from the partners will help Adani Gas accelerate project executions in all its new geographical areas. Adani Gas shall also pursue fuel retail business in India and target to setup 1,500 fuel stations offering top of the line products in the coming years, it added.
At 09:24 am, Adani Gas was trading 13 per cent higher at Rs 155 on the BSE, as compared to a 0.16 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 20 million equity shares changing hands in first 10 minutes on the NSE and BSE.