Govt to sell 100% stake in Pawan Hans helicopters

The government on Wednesday invited a fresh expression of interest (EOI) for disinvestment of its entire 100% stake in helicopter services provider Pawan Hans (PHL), which is owned jointly by the Centre and ONGC (51% and 49%)

The Department of Disinvestment and Public Asset Management (DIPAM) floated the offer for sale for government’s 51% stake in PHL by way of strategic disinvestment. Separately, ONGC's Board earlier this month approved selling its entire 49% stake in the company and conveyed the same to the government. The two combined make it 100%.

The new EOI is in the light of the ONGC's plan to exit totally from Pawan Hans.

The EOI has to be submitted on or before September 12, the government said in an advertisement in major economic dailies.

The department of disinvestment plans to intimate the shortlisted bidders on October 3 after which financial bids will be invited from the shortlisted applicants.

The government has appointed State Bank of India Capital Market Limited (SBICAP) as its adviser for PHL disinvestment which owns a fleet of 46 helicopters.

The government had in mid-April come out with a fresh information memorandum for strategic stake sale of Pawan Hans after it had to withdraw two earlier offers for sale due to acute lack of bidders. One of the offers had only two bidders -- Global Vectra Helicorp (India) and US-based Continental Helicopters made an offer that time.

Subsequently, it decided to revisit the preliminary information memorandum (PIM). The government issues PIM before strategic stake sale to assist the prospective bidders with information about the company to be divested.

On Wednesday, it issued an addendum to the earlier PIM, the potential and existing bidders an opportunity to participate in the disinvestment process.