I-Squared pumps in $300m investment to AG&P

As we predicted, US-based private equity firm I Squared Capital, parent company of city gas retailer Think Gas, is said to have gone ahead with an investment in Singapore-headquartered AG&P Group's Indian arm AG&P Pratham.

"The deal is done," reports a CGD sector source. "I Squared Capital has already provided funding."

Another CGD sector source also makes the same claim. Still unclear is how much money I Squared Capital has provided to AG&P, but two separate industry sources tell us they have heard it has invested $300m for part of the 51% stake it plans to acquire.

"What I hear is AG&P and Think Gas are carrying out the technology transfer," we hear. When contacted, an AG&P spokesperson said: "Any such information is commercial in confidence, and we do not wish to comment on such speculative news."

When contacted, former Petronet-LNG director finance and current Think Gas chairman Amitava Sengupta said he was unaware of any deal. "These matters are handled by the I Squared Capital team, and I know nothing about it," said Sengupta.

When asked about the technology transfer, he replied, caustically: "There's hardly any technology in the CGD business to transfer, CGD has no technology, what I know is till now there is no investment yet, but you know investment companies are always looking for places to invest." In April (2021), Think Gas carried out due diligence on AG&P with company president Sandeep Trehan visiting AG&P's offices in Chennai and Kerala.

Think Gas also sent three teams to see CGD areas held by AG&P. Meanwhile, morale is believed to have improved at AG&P Pratham since April (2021).

The company has begun paying salaries on time, giving raises to employees, and recruiting. Before that, this report heard complaints of late salary payments from disgruntled employees.