Mahanagar Gas Limited announces 100% acquisition in Unison Enviro Private
The acquisition was completed on 1st February 2024, subsequent to the receipt of approval from Petroleum and Natural Gas Regulatory Board (PNGRB) on 13th December 2023.
Mumbai: Mahanagar Gas Limited (MGL), one of the largest city gas distribution companies in India, announces the acquisition of 100% equity stake in Unison Enviro Private Limited (UEPL). This strategic acquisition, the first in MGL's history, solidifies the company's commitment to its long-term growth strategy.
The acquisition was completed on 1st February 2024, subsequent to the receipt of approval from Petroleum and Natural Gas Regulatory Board (PNGRB) on 13th December 2023. Prior to the transfer, Ashoka Buildcon Ltd. (ABL) and an investment fund managed by Morgan Stanley India Infrastructure (MSII) held equity in UEPL.
Mr. Ashu Shinghal, Managing Director, Mahanagar Gas Limited said, “Unison Enviro Private Limited is our first acquisition. It is a momentous occasion for MGL, marking a significant milestone in our corporate history. The acquisition of UEPL aligns with our commitment towards realising our long-term growth plans. It will not only help expand our core business of City Gas Distribution but will also help UEPL in ensuring a higher growth trajectory by leveraging deep domain knowledge, optimisation of cost structure through possible integration and synergies.”
“We extend a warm welcome to the employees, partners, vendors, and customers of UEPL into the MGL family”, he added.Read Also : THDCIL conferred with prestigious 1st Prize for ‘Advancement in Green Mobility
Mr. Ashish Kataria, Director of Ashoka Buildcon Limited, said, “The transaction showcases ABL’s ability to identify, implement and successfully divest in new and promising sectors. We have reiterated our commitment to give our investors a good return and help the country transition to cleaner energy. We thank our investor Morgan Stanley India Infrastructure for their contribution in making this a successful venture. With Mahanagar Gas Limited acquiring hundred per cent stake in UEPL, we are delighted to have delivered value to all its stakeholders.”
Mr. Shyamsundar Gurumoorthy, Managing Director of Morgan Stanley India Infrastructure, added, "At the time of our investment, UEPL was a pre-revenue company and its scale-up to a profitable business serving 25,000+ customers has been a rewarding journey. We are proud to have partnered with Ashoka Buildcon Limited to build UEPL."Read Also : MECL Drills Past Remarkable Milestone, Surpasses 3 Lakh Meters of Exploratory Drilling
The Share Purchase Agreement between MGL, UEPL, and its shareholders, ABL and MSII, was signed on 3rd March 2023, resulting in the acquisition at a cash consideration of Rs 562 crore. HDFC Bank served as the exclusive Transaction Advisor to MGL, while Kotak Mahindra Capital Company was the exclusive financial advisor to Ashoka Buildcon Limited and the investment fund managed by Morgan Stanley India Infrastructure.
In addition to this landmark acquisition, MGL has further diversified its energy portfolio with the establishment of Mahanagar LNG Private Limited. MGL is also working with Brihanmumbai Municipal Corporation (BMC) to set up one of the largest Biogas plants based on Municipal Solid Waste in Mumbai. Hydrogen, EV, Renewables are adjacent areas for MGL to expand its energy portfolio for which the company is actively engaged in exploring opportunities to fuel its growth.Read Also : HPCL and Birmingham University join hands
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