French energy major Total S.A. is planning to acquire a 30 percent stake in Indian gas distribution company Adani Gas. As per a Times of India report, Total S.A. will invest more than Rs 5,500 crore to acquire the 30 percent stakes in the Adani group.
With the deal in place, Total S.A. will have almost an equal stake in the company as the founder and chairman, Gautam Adani.
Total did not respond to request for comment on the development, Reuters reported. Adani Gas wasn't reachable as well. However, markets welcomed the development, with Adani Gas shares rising 6.7 percent on the Bombay Stock Exchange on Friday.
The Adani Group tied up with Total SA to enter the petroleum retail business in 2018. The venture had planned to open about 1,500 stations to supply compressed natural gas (CNG) besides developing liquefied natural gas (LNG) projects. Developing re-gasification terminals, including one at Dharma LNG, was one of the targets of the joint venture.
Gautam Adani held a global rank of 154 in the Forbes list of richest Indians in 2018,. However, the group has been struggling with loses for some years.
Gautam Adani's losses
2017: Adani Group lost almost about Rs 6,000 crore from its investment in the debt-ridden Mundra thermal power plant, the country's largest coal-fired project.
2018: Adani Power saw an 80 percent rise in losses in the first quarter with while income fell about 30 percent. The losses increased from Rs 453 crore to Rs 825 crore. The consolidated income also saw a fall of about Rs 1,500 crore in the first quarter.
2019: Gautam Adani's net worth dropped to $3.68 billion from $6.75 billion after shares of four companies saw a value erosion between 7 percent and 45 percent.