Mahanagar Gas Completes Landmark Acquisition, Acquires UEPL
Mahanagar Gas Limited (MGL), a prominent city gas distribution company in India, has successfully completed its inaugural strategic expansion by acquiring Unison Enviro Private Limited (UEPL). The acquisition, valued at Rs 562 crore, was officially concluded on February 1, 2024, following the approval from the Petroleum and Natural Gas Regulatory Board on December 13, 2023. Prior to this transaction, Ashoka Buildcon Ltd. (ABL) and a fund managed by Morgan Stanley India Infrastructure (MSII) were the equity holders in UEPL. The Share Purchase Agreement among MGL, UEPL, and its shareholders was formally executed on March 3, 2023.
Ashu Shinghal, the Managing Director of Mahanagar Gas Limited, expressed that the acquisition of Unison Enviro Private Limited (UEPL) is a significant moment for MGL, marking a crucial milestone in the company's corporate history. This strategic move aligns with MGL's commitment to achieving long-term growth objectives. Shinghal highlighted that the acquisition will not only expand MGL's core business of City Gas Distribution but will also contribute to UEPL's growth by leveraging expertise, optimizing cost structures through potential integration, and benefiting from synergies.
Ashish Kataria, Director of Ashoka Buildcon Limited, commented on the transaction, emphasizing ABL's capability to identify, implement, and successfully divest in promising sectors. Kataria reiterated the commitment to providing good returns to investors and supporting the country's transition to cleaner energy. He expressed gratitude to Morgan Stanley India Infrastructure for their contribution to the success of the venture. With Mahanagar Gas Limited acquiring a hundred percent stake in UEPL, Kataria highlighted the delivery of value to all stakeholders.
The Share Purchase Agreement, signed on March 3, 2023, facilitated the acquisition at a cash consideration of Rs 562 crore. HDFC Bank acted as the exclusive Transaction Advisor to MGL, while Kotak Mahindra Capital Company served as the exclusive financial advisor to Ashoka Buildcon Limited and the investment fund managed by Morgan Stanley India Infrastructure. Apart from this acquisition, MGL is diversifying its energy portfolio by establishing Mahanagar LNG Private Limited and collaborating with Brihanmumbai Municipal Corporation to set up a significant Biogas plant in Mumbai. The company is also exploring opportunities in hydrogen, electric vehicles, and renewable energy sectors.