French Engie to Sell 10% Stake in Indian Petronet LNG

GDF International, a unit of French Engie, is looking to sell its entire 10% stake in India’s largest LNG importer, Petronet LNG.

“We have been informed by M/s GDF International, who is holding 10% equity share capital in the company, that they proposed to divest their entire shareholding in the company,” Petronet LNG said March 9 in a stock exchange filing.

Four other shareholders are Gas Authority of India, Oil and Natural Gas Corporation, Indian Oil Corporation and Bharat Petroleum Corporation, each with 12.5%; the remaining 40% is held by the public.

Engie said the four might each buy up to quarter of its stake, bringing them up to 15%. At the current market price, the 10% stake is valued at Indian rupees 29bn ($434mn). In an email statement sent to NGW, a company spokesperson said, "As part of its strategy announced in February 2016 to be leader of the energy transition in the world, Engie is notably engaged in a process of assets portfolio rotation. The company has thus decided to dispose of its financial participation in Petronet LNG." 

Petronet LNG operates two import terminals at Dahej and Kochi. Last month, Petronet reported a 133% rise in net profit for the 3Q that ended on December 31, 2016. 

Shardul Sharma