Pawan Hans’ 300 staff plan to bid for govt’s 51% stake
, ET Bureau|
Dec 09, 2017, 10.28 AM IST
A union of more than 300 employees at state-run helicopter operator Pawan Hans is preparing a proposal to buy the government's 51% stake, which is on the block.
"There is a provision for employees to bid and they have said they are preparing a proposal," a top official at the civil aviation ministry told ET. "If it goes through, it will indeed be a historic transaction."
The All India Civil Aviation Employees' Union has appointed Dubai-based Martin Consulting as adviser for the planned transaction. The Department of Investment & Public Asset Management is carrying out the sale of the government's stake, said to be valued at about Rs 500 crore.
The employees can tie up with a private equity or venture capital fund, which will purchase the stake on their behalf. Up to 10% will then be given to them as stock options. A person familiar with the development said the employees are in talks with financial institutions to invest in the helicopter operator.
State-run Oil & Natural Gas Corp holds the remaining 49% in Pawan Hans.
The last date for submitting expressions of interest was Friday. The employees have asked for and have been granted an extension of seven days, the senior ministry official said. The government appointed SBI Capital Markets as the transaction advisor.
The employee union's proposal is a strong turnaround from February, when it was up in arms against the divestment. It had written to Prime Minister Narendra Modi then, calling the plan "arbitrary and unjustified."
"The government isn't going back on its disinvestment plan. It's a good provision and it's a way to keep the company close to its employees," said VC Tiwari, one of the union's office bearers.
The financial state of Pawan Hans is better than Air India, also up for sale, although it is a fraction of the airline's size.
"There is a provision for employees to bid and they have said they are preparing a proposal," a top official at the civil aviation ministry told ET. "If it goes through, it will indeed be a historic transaction."
The All India Civil Aviation Employees' Union has appointed Dubai-based Martin Consulting as adviser for the planned transaction. The Department of Investment & Public Asset Management is carrying out the sale of the government's stake, said to be valued at about Rs 500 crore.
The employees can tie up with a private equity or venture capital fund, which will purchase the stake on their behalf. Up to 10% will then be given to them as stock options. A person familiar with the development said the employees are in talks with financial institutions to invest in the helicopter operator.
State-run Oil & Natural Gas Corp holds the remaining 49% in Pawan Hans.
The last date for submitting expressions of interest was Friday. The employees have asked for and have been granted an extension of seven days, the senior ministry official said. The government appointed SBI Capital Markets as the transaction advisor.
The employee union's proposal is a strong turnaround from February, when it was up in arms against the divestment. It had written to Prime Minister Narendra Modi then, calling the plan "arbitrary and unjustified."
"The government isn't going back on its disinvestment plan. It's a good provision and it's a way to keep the company close to its employees," said VC Tiwari, one of the union's office bearers.
The financial state of Pawan Hans is better than Air India, also up for sale, although it is a fraction of the airline's size.
