ADB wants to exit Petronet

The Asian Development Bank (ADB) wants to exit Petronet LNG Ltd and has offered to sell its 5.2 per cent stake in the country’s largest liquefied natural gas importer to oil firms Indian Oil Corp, Oil and Natural Gas Corp, GAIL India and Bharat Petroleum Corp.

“ADB last month wrote to PLL Chairman and Oil Secretary S Sundareshan, expressing its desire to exit the company,” a company official said.

The multilateral lending agency holds 39 million shares in Petronet LNG, which at today’s trading price of Rs 114.85 is worth Rs 448 crore. State-owned IOC, ONGC, GAIL and BPCL each have 12.5 per cent stake in Petronet and each has pre-emption or right of first refusal in case ADB is to exit the company.

“ADB has also written separate letters to IOC, ONGC, GAIL and BPCL informing them its decision to exit PLL and offering them its 5.2 per cent holding as per the condition laid in the shareholders agreement,” he said.