The Centre on Thursday invited bids for selling its entire stake of 51% in Pawan Hans Limited in its third attempt at divesting its stake in the chopper firm. Pawan Hans is a 51:49 venture between the Ministry of Civil Aviation and ONGC, and has a fleet of 43 helicopters.
The successful bidder will have the option to buy ONGC’s stake of 49% in Pawan Hans. The government has sweetened the deal by reducing the net worth criteria for bidders to apply, from ₹500 crore to ₹350 crore.
It has also offered to indemnify the successful bidder of 51% of the liabilities related to tax and statutory dues of ₹576.99 crore, which was among the reasons why the last two attempts at disinvestment failed, according to sources.
August 22 deadline
The company’s capital stands at ₹560 crore as on March 31, 2019. Interested entities are required to submit bids by August 22, and the Centre will announce the shortlisted bidders by September 12.
Shortlisted bidders will be required to submit a financial bid in the form of price per share for acquiring 51% Government of India stake.
The successful bidder will be required to lock-in its shareholding in Pawan Hans for three years. It can’t sell, transfer or mortgage the company’s assets for two years or terminate any of the permanent employees for one year from the completion of the transaction.
The heliport owned by the firm in New Delhi is not part of the stake sale, though the selected bidder will have the right to use it for the first two years. Employees and management of Pawan Hans can also bid either independently or in consortium or as a joint venture along with a bank, venture capitalist or a financial institution.