French Oil and Gas company, Total SA is planning to buy 30 per cent shares in the Indian gas company, Adani Gas, according to a media report.
The transaction can be over $800 million, three people, who were aware of the matter, informed the daily news, The Times of India.
The acquisition of 30 per cent shares would prompt an open offer from Total SA to the public stakeholders of the Indian Gas firm, the report said, adding that this would increase the transaction size over $1 billion.
Adani Group presently acquires a little less than 75 per cent shares in the gas firm. If the transaction is carried through then Total, as well as Adani, may acquire an equal stake in the firm, the report stated.
With this deal, Adani Group will be able to trim its debt, as per the report.
Adani Gas is a subsidiary business of the conglomerate firm, Adani Group. The company mainly supplies PNG (Piped Natural Gas) to the commercial, domestic and industrial sector. Furthermore, it renders CNG (Compressed Natural Gas) to the transportation sector.
The firm has established its gas distribution centres in Khurja (Uttar Pradesh), Vadodara (Gujarat), Ahmedabad (Gujarat) and Faridabad (Haryana). Moreover, the company along with Indian Oil Corporation Ltd is granted to operate gas distribution centres in Allahabad, Chandigarh, Ernakulam, Daman, Panipat and Dharwad.