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Chemoil Energy Ltd. has announced that it has sold 1 percent of its shareholding - amounting to 100,000 shares - in Chemoil-Adani Pte. Ltd. (Chemoil-Adani) to its joint venture partner Adani Global Ltd. (Adani) for US$123,471.

Following the completion of the sale, Adani now holds a 51 percent majority stake in Chemoil-Adani to Chemoil's 49 percent.

Chemoil said the sale arose from a call option exercised by Adani pursuant to Article 13.2 of the shareholders agreement entered into between the company and Adani on 1 April 2008.

"The consideration for the sale shares was mutually agreed between the parties, based on the par value of the sale shares and its share of profit after tax in respect of FY2009. The consideration was satisfied by Adani in cash," Chemoil said in an announcement.

The latest available audited book value as well as the net tangible asset value of 1 percebt of Chemoil-Adani as at 31 March 2010 was US$103,669.

Chemoil said that none of the directors of the company or any of its controlling shareholders have any interest in the sale.

"The sale is not expected to have any impact on the net tangible asset or earnings per share of the company for the current financial year," Chemoil said.