NEW DELHI: The Centre on Tuesday launched its fourth attempt to fully privatise state-owned helicopter company, Pawan Hans India Limited as it sought Expression of Interest (EoI) for selling its entire stake in the Central Public Sector Undertaking (CPSU) under the ministry of Civil Aviation.
“The government has ‘in-principle’ decided to disinvest its entire equity shareholding in the company by way of strategic disinvestment to investor(s) along with transfer of management control,” the Preliminary Information Memorandum (PIM) said.
This will be the second attempt after its similar offer in 2018 and 2019 failed to get any suitors. The EoI has been invited by the Department of Investment & Public Asset Management which will conduct the transaction with the help of SBI Capital Markets Limited (SBICAP) -- the firm that has been appointed as an advisor to manage the strategic disinvestment of the company.
Interested parties have been given time till January 19 to submit bids and the shortlisted bidder will be intimated by February 17. As of now, PHL has 42 helicopters in its fleet. For FY20, the firm posted loss of Rs 28 crore.
For now, Rohini Heliport will not be a part of this transaction, and will be demerged from Pawan Hans into Rohini Heliport Ltd. “Proposal to provide the successful bidder with right to use over Rohini Heliport (currently being used by PHL) for a period of 10 years, is under consideration.
If approved, such right to use shall be available from the date of consummation of the proposed transaction,” the PIM said. Currently the government owns 51 per cent stake and ONGC owns 49 per cent stake in the company. The successful bidder, as identified by the government, will also have the option to buy the entire ONGC stake of 49 per cent in PHL on similar price and term.