Matrix in talks with Gasonet for equity stake
Ahmedabad-based CGD and renewables company Matrix Gas is believed to be interested in buying up to 50% of Rajasthan-based gas retailer Gasonet Services.
Promoted by former PNGRB member BS Negi, Gasonet was established in 2022 through Negi's Delhi-based company Resonance Energy in partnership with Mumbai-based telecom infrastructure company Dinesh Engineers and Ahmedabad-based engineering and consultant company Tolani Projects. "We have been talking to people for over a year," confirms a Gasonet source.
Refuting rumours that the company is for sale, our source adds: "We are not selling the company but instead looking for equity partners." Still unclear is the value of the deal.
Two separate CGD industry sources also confirm the process. "The talks are at an advanced stage," stresses one source.
"The deal is most likely done; you should expect an announcement in a few days." Countering this, our Gasonet source adds: "Talks are indeed at an advanced stage, but nothing has been signed on paper yet; Matrix is conducting its due diligence before they finally decide to invest."
Another source says he has also heard rumours that Matrix is buying Gasonet. "Why would we sell the company?" insists our Gasonet source.
"We're trying to get debt or equity funding; what stake Matrix will buy is not confirmed yet; they are looking at various options; I cannot disclose much because of the confidentiality clause, and I don’t want to jeopardise the transaction." He adds he will comment once "the deal is done."
Gasonet operates four areas in Uttarakhand, Rajasthan, and Himachal Pradesh, all won in CGD-XI. These areas include 15 cities.
In Rajasthan, Gasonet has one area: Bikaner and Churu districts. In Uttarakhand, Gasonet operates in two areas: Pauri Garhwal, Uttarkashi, Rudraprayag and Tehri Garhwal districts, and Pithoragarh, Champawat, Almora, Chamoli and Bageshwar districts.
In Himachal Pradesh, Gasonet operates in one area: Mandi, Kullu, Kinnaur and Lahaul & Spiti districts. Gasonet signed the contracts for all four between March 2022 and May 2022.