Construction Industry News
The Treasury Department said Friday it has received financial bids for the divestiture of ailing helicopter operator Pawan Hans, which could make it the second public sector after Air India to be privatized in FY22.
“The financial offers for the divestment of Pawan Hans have been received by the transaction advisor. The process is now moving into a concluding phase," tweeted DIPAM Secretary Tuhin Kanta Pandey.
Last year, in a new preliminary information memorandum, the ministry tightened the terms to sell the helicopter operator on its fourth attempt, lowering the minimum equity for potential bidders and the lock-in period of investments, allowing the successful bidder to sell assets after one year. . The successful bidder was now allowed to sell assets one year after acquisition, instead of two years suggested in the Letter of Interest issued in 2019.
While the change in shareholding between consortium partners was not allowed, the new offer document allowed it if the lead investor has a minimum stake of 26 percent and other members have at least 10 percent each. The lock-in period for investments was also reduced to one year compared to three years previously
However, a new business continuity clause was added to ensure that the successful bidder will not liquidate or close the business for three years. The minimum equity of bidders has also been lowered to Rs 300 crore from Rs 350 crore earlier and the profitability criteria has been abolished to increase the bidder's universe.
