Mahanagar Gas Limited (MGL) has signed a share purchase agreement to acquire 100 per cent stake in Unison Enviro Private Limited (UEPL) for Rs 5.31 billion ($64.9 million). This acquisition will enable MGL to expand to newer geographical areas in Maharashtra (Ratnagiri, Latur and Osmanabad) and Karnataka (Chitradurga and Davanagere), thereby providing new avenues for long-term growth. HDFC Bank Investment Banking was the exclusive transaction adviser to MGL while Kotak Investment Banking was the exclusive financial adviser to Ashoka Buildcon Limited (shareholders of UEPL) and the investment fund managed by Morgan Stanley India Infrastructure on this transaction. Morgan Stanley India Infrastructure has agreed to sell its 49 per cent stake in Unison Enviro at around Rs 2.6 billion. The fund had invested Rs 1.5 billion (about $21 million) in Unison in December 2018. The exit price translates into an internal rate of return, or absolute return, of 14-15 per cent in rupee terms.
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