Government, ONGC yet again offer their entire stake for divestment in Pawan Hans – Times of India

NEW DELHI: The government has yet again begun to process to divest Pawan Hans Ltd (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 the preliminary information memorandum issued by the department of investment and public asset management (DIPAM) on Tuesday.
“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.
Expressions of interest have to be submitted by January 19, 2021, and shortlisted bidders will 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 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.