Bloomberg are reporting that Engie SA is seeking to raise as much as 33 billion rupees (US$512 million) selling its entire stake in India’s biggest importer of LNG.
Engie’s GDF International unit is offering 75 million shares of Petronet LNG Ltd., equal to approximately a 10% stake, at 417 rupees to 440 rupees apiece. The price range represents a 0% to 5.2% discount to Petronet’s last close.
The sale adds to at least US$9.5 billion of divestments announced by Engie over the past three years. The French company in May entered exclusive talks to sell a 70% stake in its exploration and production unit to Neptune Energy, which is backed by private equity firms Carlyle Group LP and CVC Capital Partners.
Engie is exiting the investment as Indian Prime Minister Narendra Modi pushes the use of cleaner fuels to improve the air quality in cities. Oil Minister Dharmendra Pradhan said last year the nation will lay 15 000 km of gas pipelines over five years. India has been seeking to increase the share of natural gas in its energy mix to 15% by 2020, from 6.5%.
Engie flagged its plans to sell the stake in March and said it would first offer the shares to the four Indian state-owned petroleum companies that control Petronet. Oil & Natural Gas Corp., Bharat Petroleum Corp., Indian Oil Corp. and GAIL India Ltd. each own about 12.5% of the LNG importer.
Any transaction will help further Engie’s plans to sell US$16.9 billion of assets in the three years through 2018, curbing its exposure to fluctuating prices of oil, gas and power. It intends to reinvest the proceeds in energy services and infrastructure as well as renewables, which offer more predictable revenue streams through long-term contracts and regulated tariffs.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09062017/engie-seeks-selling-stake-in-india-lng-importer/