However, if the state-run promoters of Petronet are not allowed to raise stake in the company for fear of it becoming a public sector unit, Behuria suggested selling ADB's shareholding to the public.
Behuria's suggestion of selling ADB's shareholding to the public may find takers in other promoters -- GAIL, ONGC and BPCL, which want to block "backdoor" entry of steel czar Lakshmi Mittal into the nation's largest LNG importing firm.
"We have written to Petronet CEO Prosad Dasgupta about our interest in ADB stake and that if that was not possible it should be divested in favour of Indian public," Behuria said.
Petroleum Secretary M S Srinivasan, who is also the chairman of Petronet, is against the four promoters buying ADB's stake and may instead back Dasgupta's move to get Mittal or US's Chevron on board.
Dasgupta had in response to GAIL chairman U D Choubey's written request for buying out ADB's stake stated that the multilateral agency's stake should be given to a third party like Mittal or Chevron, which in exchange is willing to offer LNG to Petronet.
IOC, GAIL, ONGC and BPCL together hold 50 per cent stake in Petronet, while Gaz de France holds 10 per cent. These firms have the first right of refusal over ADB stake. ADB is likely to exit Petronet by year end as its internal regulations prohibit it from being a debt financier as well as equity holder in the same company.
Dasgupta in his letter to Choubey had stated that if any of the promoters or GdF were to acquire ADB's 5.2 per cent stake, it would trigger the takeover code and require making an open offer to the public for acquiring additional 20 per cent shares.
After the open offer, the collective holding of the promoters and GdF would rise to 85 per cent and since a company cannot remain listed if the public holding goes below 25 per cent, the takeover code would require the promoters and GdF to again collectively make an offer for the remaining 15 per cent, leading to delisting of the company.
However, officials discounted Dasgupta's threat that ADB, KfW and IFC would withdraw 450 million dollar loan for Petronet's Kochi project in case Petronet turned into a public sector firm, saying raising debt with combined fiscal strength of the four promoter firms would be "child's play".
