11 March 2024 – Mumbai: According to two industry insiders informed of the process, AG&P Pratham and Think Gas Distribution, two Indian city gas distribution businesses backed by global infrastructure investor I-Squared Capital, are planning to combine. With a combined valuation of more than $1.1 billion, the merged company will have the strength to take on competitors.
A share of one firm will be exchanged for every share of the other in a stock-for-stock merger. At the moment, I-Squared owns 73% of AG&P Pratham, the Indian division of Atlantic Gulf & Pacific (AG&P) City Gas, a Singapore-based company, and 100% of Think Gas Distribution. About 21% is owned by AG&P, while the consortium headed by Osaka Gas in Japan owns 6%. The promoters of both firms have chosen to combine their activities since they are in the CGD industry.
Conclusion
The objective is to enhance the efficiency of resource allocation and workforce utilization. Natural gas distribution or transportation via a network of pipes to customers in the home, business, industrial, and transportation sectors is referred to as CGD. The merged company’s scale will enable it to compete with companies such as Torrent Gas, Adani Total Gas, Mahanagar Gas, Gujarat Gas, Indraprastha Gas, and Gail Gas.
