Government invites offers for the strategic sale of Pawan Hans for the third time
Mumbai, July 11 (). While trying again to exit the helicopter operations business, the government issued a new bidding document for strategic divestment at Pawan Hans on Thursday, offering the company to bidders with a minimum net worth of Rs 350 million.
The government has a 51 percent stake in Pawan Hans, which has a fleet of 43 helicopters. The remaining 49 percent corresponds to the oil and gas giant ONGC.
The action of GOI has 'in principle' decided to divest its entire 51 percent shareholding in Pawan Hans Ltd (PHL) through strategic divestment for investors along with the transfer of management control ... In the past, ONGC also decided that it will sell all of its 49% equity stake in PHL, at the same price per share derived and in the same terms and conditions ... according to the Preliminary Information Memorandum (PIM).
This is the third time in the last 16 months, the government has tried to attract a buyer for Pawan Hans, who is estimated to have recorded the loss in the amount of Rs 72.42 million in the previous tax.
The last date for the presentation of the Expression of Interest (EoI) is August 22, 2019, and the information to the shortlisted bidder is September 12.
The government has appointed SBICap as its advisor to advise and administer the strategic divestment of PHL (Proposed Transaction).
According to the 122-page PIM, the bidder must have a minimum value of Rs 350 crore. In the document of the previous offer, this amount stood at 500 million rupees.
In the case of the consortium also, the combined network of all consortium members should be Rs 350 crore, according to the PIM document. For entities that are Air Transport Service Operators (ATSO) and that hold up to 51 percent of the consortium's capital stock, the network limit and profitability will not be applied. IAS RAM MR