Japanese investors plan to double stake in AG&P Pratham
Osaka Gas Co, Sumitomo Corporation, Japan Bank for International Cooperation (JBIC) and Konoike Transport is planning to double its stake in city gas distribution company AG&P Pratham ahead of its IPO planned next year, according to sources aware of the development. This will make the consortium a majority stakeholder in the I-Squared Capital-backed company, which was last year valued at $1.5 billion.
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Currently, infrastructure investor I-Squared Capital is the majority stakeholder with a 56% stake in AG&P Pratham. Osaka, Sumitomo, JBIC and Konoike Transport together hold 26%. The balance of 18% is with Singapore-based Atlantic Gulf & Pacific (AG&P) LNG Holdings, the sources added.
«The Japanese consortium including Osaka Gas is very interested and willing to increase their stake in AG&P Pratham. I-Squared Capital will dilute their stake for the Japanese consortium to increase the stake,» said an official aware of the development, adding that AG&P is planning an IPO in the second half of 2026 and the stake dilution will take place before that. Last March, I-Squared Capital decided to merge the operations of its city gas distribution companies in India — AG&P Pratham and Think Gas Distribution. The combined entity is valued at around $1.5 billion. The merger is awaiting regulatory approvals.
«The merged entity will operate for a year before filing for an IPO. The management is also planning to rename the company shortly,» said another source, adding that the company's new identity
