ADB says no plan to sell Petronet LNG stake
HONG KONG, Aug 7 (Reuters) - The Asian Development Bank is planning to hold on to its 5.2 percent stake in Indian gas importer Petronet LNG (PLNG.BO), a bank executive said on Thursday, denying media reports that it might be about to sell.
"We aren't selling our stake. At this point ADB has decided not to divest its shares," said Shantanu Chakraborty, senior investment specialist at ADB's Private Sector Operations Department.
He rejected as "unfounded" media reports that ADB's own rules precluded holding debt and equity in one company, which would force it to sell after it lent $169 million to Petronet LNG last year.
State firms Oil and Natural Gas Corp (ONGC.BO), Indian Oil Corp (IOC.BO), Bharat Petroleum Corp Ltd (BPCL.BO) and Gas Authority of India Ltd (GAIL.BO) each have 12.5 percent stakes in Petronet, while France's GDF Suez (GSZ.PA) has 10 percent.
Media reports had named ArcelorMittal (ISPA.AS) and Chevron (CVX.N) as potential buyers of ADB's stake which, at a market value of only around $57 million, would offer a cheap foothold in a fast growing market for liquefied natural gas.
