Adani Gas to provide the distribution channel for Total, says Robbie Singh
French oil and gas giant Total has agreed to acquire a 37.4 percent stake in Adani Gas. Robbie Singh, Group CFO of Adani Group, says the deal is of high strategic importance.
French oil and gas giant Total has agreed to acquire a 37.4 percent stake in Adani Gas.
According to Robbie Singh, Group CFO of Adani Group, the deal is of high strategic importance as it is a partnership between a large infrastructure developer in India and a very large LNG and gas global major.
“Total was looking to come into Indian market to participate in an end-to-end manner all the way to the retail, and we at Adani Gas have the capability to provide a distribution channel. Therefore, it’s very good from a point of view of strategy for us to align with a global major and for them to align with a large infrastructure group in the country,” Singh told CNBC-TV18.
“Total will make a public offer and that process will run through and we expect that process to complete over an 8-week period. Then from a secondary sale they will acquire from the family shares and that would mean that they would end up at 37.4 and Adani family at 37.4 and 25.2 percent remains in the market,” he further added.
According to him, the transaction only changes the shareholding and not the balance sheet.
On capital investment front, he said, “We expect a capital outlay in the order of about Rs 7,000 crore.”
“It’s a total investment by the company across its geographical areas, across the development plan that the company has against the current GAs,” Singh added.
About the business, the group CFO said, “Adani Gas itself will be in distribution and retail and with Total and Adani as a joint venture on the private side we also have LNG terminal facilities. Therefore, from a portfolio investment by Adani family and Total in India, as was part of Total’s press release, it gives a full end-to-end from LNG to distribution. So it becomes one of its kind and unique entity within the country.”
“Total believes Adani Gas (AGL) has competent management and we are fortunate to have a good team in AGL ably led by our CEO, CFO and the board. So Total is very comfortable with the management and that’s why they have taken this decision,” added Singh. The deal should be complete by January 2020.
First Published: Oct 14, 2019 12:29 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM