GDF International may exit Petronet today via a block deal

ET Intelligence Group: GDF International, France’s multi-national gas distribution and marketing company, is looking to sell its entire 10% stake worth $512 million (Rs 3,300 crore) in Petronet LNG, India’s largest LNG terminal operator, through a block trade on Thursday, according to a term sheet seen by ET.

Investment bankers JP Morgan and Citigroup have got the mandate to arrange for buyers.

The share sale is happening between an indicative range of Rs 417 and Rs 440 per share. This implies that the block trade will take place at 0 to 5.23% discount to Petronet’s closing price on Wednesday. Petronet LNG shares closed at Rs 440.10 on Wednesday.

GDF had earlier written to principal promoters of Petronet LNG — GAIL India, Oil and Natural Gas Corp (ONGC), Indian Oil Corp ( IOC) and Bharat Petroleum Corp ( BPCL) — to buy its stake in the company.

The four promoters hold 12.5 per cent each in Petronet. If any of the promoters buys GDF’s stake, the combined shareholding of state-owned firms will go above 50 per cent, which effectively means Petronet will become a public sector company.

In September 2014, ADB had sold 5 per cent stake in Petronet LNG via a block deal.