Mitsui, Gulf Entities Interested in ADB's 5.2% Stake in Petronet

Japan's Mitsui and sovereign wealth funds of Qatar, Abu Dhabi and Oman are keen to buy Asian Development Bank's 5.2 per cent stake in Petronet LNG Ltd as promoter have agreed to waive off their first right of refusal, reports Press Trust of India.

In 2011, ADB decided to sell its 5.2 per cent stake in Petronet but could not go ahead as promoter state owned firms like GAIL refused to waive off their first right of refusal. However, with the India's Oil Ministry refusing permission to public sector oil companies to buy the stake on ground that such a move will alter the character of Petronet and give it a look of government enterprise, the promoters have fallen in line and all of them including GAIL giving consent, reports Press Trust.

ADB has held 5.2 per cent stake in Petronet since 2004. It had in fact first proposed to exit Petronet in 2008 but was persuaded to stay on as the four promoters made a strong pitch to buy the stake.