Govt comes out with fresh info memorandum for Pawan Hans divestment
PTI April 13, 2018
(Eds: Adding more info)
New Delhi, Apr 13 (PTI) The government has come out with a fresh information memorandum for strategic sale of helicopter services provider Pawan Hans wherein bidders need to have a minimum net worth of Rs 500 crore.
The latest memorandum has been issued days after the government withdrew the previous note apparently due to a tepid response from investors.
The last date for submission of EOIs is June 11, 2018 and intimation to the shortlisted bidders is July 02, 2018.
Pawan Hans is a joint venture between the government and state-owned ONGC. Under the disinvestment proposal, the government plans to offload its entire 51 per cent stake in the company.
According to the 113-page Preliminary Information Memorandum (PIM), which includes 14 annexures, the bidder should have a minimum net worth of Rs 500 crore.
In the case of consortium also, the net worth criteria would remain the same. They should set up a special purpose vehicle and each members should have at least 20 per cent equity share capital.
For entities which are Air Transport Service Operators (ATSOs) and hold up to 51 per cent equity share capital of the consortium, the thresholds pertaining to net worth and profitability would not be applicable, the memorandum said.
As per the PIM, bids by management or employees of Pawan Hans directly, independently, in consortium, joint venture or as a special purpose vehicle along with a bank, venture capitalist or a financial institution will be considered in accordance with the guidelines issued by Department of Investment and Public Asset Management.
Interested bidders should have registered positive profit after tax in at least three of the immediately preceding five financial years. In case of bidders incorporated less than five years ago, they should have net profit after tax in at least three completed financial years.
A profit-making entity, Pawan Hans had debt outstanding of more than Rs 45 crore as on January 31, 2018.
This includes term loan facility availed from NTPC in 2012 at a 6 per cent per annum rate of interest to be repaid in 120 equated monthly instalments ending in March 2022.
The loan -- for purchase of 1 new Dauphin N3 helicopter -- is secured by hypothecation of the helicopter in favour of NTPC, as per the memorandum.
Pawan Hans had contingent liabilities to the tune of Rs 610.44 crore as on January 31 this year. This includes an amount of Rs 454.31 crore related to demand notice for payment of VAT (Value Added Tax). PTI SAN RAM IAS MKJ MKJ