Osaka Gas Co. and Sumitomo Corp. are on the verge of a deal to purchase an approximately 30% stake in Think Gas Distribution Pvt. That could put the value of the Indian natural gas supplier as high as $1.5 billion, according to people familiar with the matter.
The consortium of Japanese firms could reach an agreement with Think Gas backer I Squared Capital as early as September, said the people, who asked to remain anonymous because the information was confidential. Bloomberg News reported in March that the private equity firm was working with an advisor on a possible sale of up to 30% of Think Gas.
Although consultations are well advanced, I Squared may still choose not to go ahead with the deal, the people said. Representatives from I Squared Capital, Osaka Gas and Sumitomo all declined to comment, while Think Gas did not immediately respond to requests for comment.
Founded in 2018 by I Squared, Think Gas operates in 13 districts in India, supplying natural gas to the residential, commercial, industrial and automotive sectors, according to its website. In 2021, infrastructure-focused I Squared invested around US$200 million in Singapore-based AG&P City Gas, another urban gas distributor in India, which has 12 concessions in the country.
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