Tokyo Gas joins race to acquire stake in Think Gas Distribution
Tokyo Gas has joined the race to acquire a minority stake in Think Gas Distribution, Indian natural gas supplier owned by private equity fund I Squared Capital, said two people aware of the development. Founded in 1885, Tokyo Gas is the city gas provider in the Tokyo metropolitan area and surrounding Kanto region.
Tokyo Gas is doing due diligence at present, said sources.
The potential investor will buy about 30% stake in Think Gas, valuing the company at $1-1.2 billion.
Investment bank Barclays is advising I Squared for the stake sale.
Mubadala Investment, the sovereign wealth fund of the United Arab Emirates, is the other major contender for the minority stake.
Mubadala Investment and a couple of Japanese investors, including Sumitomo, are among the contenders to acquire a 30% stake in Think Gas Distribution, ET first reported on May 12.
Established by I Squared in 2018, Think Gas operates across 13 districts in India and supplies natural gas to domestic, commercial, industrial and automotive sectors. Headquartered in Delhi NCR, Think Gas has over 80 CNG stations and serves over 30,000 customers daily, according to the company website.
As a financial institution backed platform, I Squared's city gas distribution business is the largest in the country.
