Adani Gas stock gains by over 13% after French major Total’s open offer

  • French major Total will purchase 37.4% shares in Adani Gas through a tender offer to public shareholders to acquire up to 25.2% shares.
  • Total fixed a price of ₹149.6 per Adani Gas share for its offer.
  • Adani Gas stock zoomed by over 18% in early trade, as the announcement was made right before the stock markets opened.
Looks like Indian refiners have caught the fancy of international energy majors. Within months of Saudi Aramco pumping in $15 billion into Reliance Industries, French major Total agreed to buy 37.4% stake in Adani Gas via an open offer.

“Total will purchase 37.4% shares in Adani Gas through a tender offer to public shareholders to acquire up to 25.2% shares subject to applicable regulations and purchase the residual shares from Adani Family,” Adani’s press release said.

Adani Family and Total shareholders shall ultimately hold 37.4% each and public shareholders shall hold the remaining 25.2%.

Adani Gas stock zoomed by over 18% in early trade, as the announcement was made right before the stock markets opened. At 11 am, it was trading at ₹154.9. This is much higher than Total’s offer which was at ₹149.6.

With this deal, Adani and Total who are already partners in fuel retailing business, are expanding their interests to the former’s city gas distribution business. Both the companies intend to jointly invest $1 billion in both these businesses.

Adani calls it one of India’s largest downstream energy partnerships. The partnership will also develop regasification terminals including Dhamra LNG, on the east coast of India.

The Indian government plans to expand piped gas connections to 70% of its population. And Adani Gas hopes to distribute gas to 7.5% of India’s population, in spite of competition from state-owned refining majors like HPCL, BPCL and IOC.

“Adani is delighted to deepen its strategic partnership with Total, a global energy major, to one of the largest downstream gas partnerships in India. Total’s investment in Adani Gas reinforces India’s natural gas and demand potential,” Gautam Adani, Adani group chairman.





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