AG&P Pratham and Think Gas set for $1.1 billion merger

I-Squared Capital-backed city gas distribution (CGD) companies in India — AG&P Pratham and Think Gas Distribution — are set for a stock-for-stock merger, estimated to be valued at over $1.1 billion (Rs 90.96 billion). The merger comes as both companies are in the CGD business. This is aimed at optimising resources and improving utilisation of manpower. Osaka Gas and Sumitomo Corp will invest $200-250 million of primary capital in the company as growth capital. After the merger, I-Squared Capital will hold over 60 per cent stake in the combined entity. AG&P will hold up to 15 per cent and the Osaka Gas and Sumitomo-led consortium will hold 25 per cent.