Adani Gas aims to close the deal with French energy-major Total by March, Suresh P Manglani, chief executive officer of the former said on Wednesday.
Manglani said that the company is committed to expanding its city gas distribution business, which will get fillip once French energy major Total SA comes in as a partner.
“The primary process is completed and the secondary process has started. Total is working to ensure that all processes are completed and the secondary stake sale takes place. They have shown interest, they are keen to participate and we look forward to them coming full-fledged on board. Hopefully, it should happen by March or at the earliest possible time,” Manglani said.
In October, Adani Gas announced that it had struck a pact under which Total SA would buy 37.5% stake in the company, including a public offer to shareholders to buy a further 25.2%; such that both partners eventually hold 37.4% each. They plan to invest in infrastructure and assets worth over US$1 billion, which span LNG infrastructure and marketing and fuel retail business.
On Wednesday, Adani Gas reported a 145% year-on-year increase in net profit to Rs 115.27 in the December quarter. Total income in October-December was Rs 529.10 crore as against Rs 496.52 crore a year ago. Shares of the company jumped 3.3% to Rs 172.55 on the Bombay Stock Exchange on Wednesday, reacting to the result.
“Adani Gas, in Q3FY20, has benefited from sweating its existing assets and enhanced coverage of newer assets. This has resulted in improved volumes and profitability,” Manglani said.
Adani Gas also informed Suresh P Manglani was stepping down as a director on the board but will continue to be the chief executive officer of the company with effect from Wednesday, adding that this is “in line with good corporate governance and bringing active participation from both the promoters.”