“Multiple expressions of interest have been received for privatisation of PHL. The transaction will now move to the second stage,” department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey tweeted on Thursday evening.
Multiple expressions of interest have been received for privatisation of Pawan Hans Limited. The transaction will n… https://t.co/AwNb27v6A9
— Secretary, DIPAM (@SecyDIPAM) 1613656352000
The government had last December reinitiated the process to divest PHL after several unsuccessful attempts in the past.
The government and Oil and Natural Gas Corporation (ONGC), which have 51% and 49% stakes in the 42-chopper PSU, respectively, have offered to sale their entire stake, according to DIPAM’s preliminary information memorandum (PIM).
“The successful bidder, as identified by government of India for the sale of its 51% stake in PHL, will also have the option to buy ONGC stake of 49% in PHL,” the PIM says.
As per the timeline announced last December with the PIM, expressions of interest had to be submitted by January 19, 2021, and shortlisted bidders were to be intimated less than a month later on February 17.
Companies bidding for PHL must have a minimum net worth of Rs 300 crore. SBI Caps is the transaction advisor for this divestment. As on March 31, 2019, PHL has contingent liabilities related to tax and statutory dues of Rs 577 crore.
PHL’s authorised capital as on March 31, 2020, is Rs 560 crore. This PSU provide air transport services for ONGC’s exploration activities and helicopter transportation services in the northeast.
Successful bidder will not be retrench any of permanent employee for a year from taking over. After one year, they can offer a VRS.
While the Delhi’s Rohini is not part of the proposed transaction and will be demerged from PHL, the PIM says a proposal to let the successful bidder use it for 10 years is under consideration.