Buyer of govt's 51% stake in Pawan Hans can decline ONGC's 49% holding
New Delhi: Entities willing to buy the government's 51 per cent stake in Pawan Hans will have the option not to purchase the remaining stake held by ONGC in the helicopter service provider.
Responding to queries raised by bidders, the government clarified on Friday that existing interested bidders need not resubmit their bids for Pawan Hans, which has a fleet of 46 choppers.
"In case the successful bidder decides not to exercise this option of buying ONGC stake or ONGC is unable to sell its stake due to any unforeseen events, then ONGC will continue as a shareholder in PHL and the successful bidder would have to execute a Shareholders' Agreement with ONGC," it said.
Earlier this month, the government had issued an addendum to the Expression of Interest (EoI) for sale of Pawan Hans Ltd (PHL) and invited bids from entities saying that along with government's 51 per cent stake, the bidders will also have the option to buy ONGC stake of 49 per cent in the company.
The last date for submission of bids is September 12.
Fresh bids were invited after ONGC board in July decided to combine its 49 per cent stake in the offer for sale by government of India.
"While ONGC has provided unconditional and irrevocable commitment to sell its shares, the successful bidder shall have the option to buy ONGC stake of 49 per cent in PHL," it said.
On April 13, the government had issued the information memorandum for the 51 per cent strategic stake sale in Pawan Hans and had sought EoI from interested bidders by June 18. About half a dozen bidders are believed to have submitted bids.
To a query on whether existing bidders would be required to resubmit their bids following the addendum issued, the government said, "resubmission by the existing IBs (interested bidders) is not compulsory if the IB does not want to make any change in the EoI submitted".
The IB has to submit a letter stating that "EoI and subsequent clarifications submitted by them shall continue to remain valid for 180 days from September 12, 2018, or such date as many be extended," it added.
Bidders who have not submitted EoI earlier and intend to participate in the transaction would have to physically submit all the documents before the last date for submission of bids.