GAIL eyes ADB’s Petronet stake for Rs 614 crore
The Asian Development Bank plans to sell its 5.2% stake in Petronet LNG Ltd, which the state-owned gas utility GAIL India Ltd is keen to acquire and may have to pay over Rs 600 crore for it.business Updated: Oct 03, 2011 22:55 IST
The Asian Development Bank plans to sell its 5.2% stake in Petronet LNG Ltd, which the state-owned gas utility GAIL India Ltd is keen to acquire and may have to pay over Rs 600 crore for it.
ADB has offered to sell its 39 million shares or 5.2% stake in Petronet, which is valued at over R614 crore at Monday’s trading price of Rs 157.85 per share on the BSE, sources privy to the development said.
GAIL, ONGC, IOC and BPCL hold a 12.5% stake each, to restrict the public sector holding in the company at 50%. GdF holds 10%. Under the share holders’ agreement (SHA), the five have the first right of refusal over ADB stake.
GAIL has proposed to the oil secretary GC Chaturvedi, who is the chairman of Petronet, that it can buy the entire 5.2% stake of ADB. In case other companies are also interested, the ADB stake can be split equally with each buying 1.3% stake.
When contacted, an ADB spokesperson from Manila said: “ADB has held a 5.2% stake in Petronet LNG since 2004. ADB always looks to exit its equity investments once it believes that the development mission has been accomplished.”