Financial offers received for Pawan Hans: Secretary DIPAM
The government has received an undisclosed number of financial offers for the sale of its stake in Pawan Hans, moving the ailing helicopter operator’s divestment process to the final stage.
Tuhin Kant Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), tweeted: âThe financial offers for the divestment of Pawan Hans have been received by the transaction advisor. The process now moves to a concluding stage. However, he did not disclose the number of bidders.
The Center sells its entire 51% stake in Pawan Hans. The state-owned Oil and Natural Gas Corporation (ONGC), which owns the remaining 49 percent, has also offered to sell its full stake in the company.
Founded in 1985, Pawan Hans has a fleet of over 40 helicopters and over 900 employees, less than half of whom are permanent. It provides helicopter services for CGSB exploration activities and in North East India.
For 2019-2020, the company recorded a net loss of Rs 28 crore, lower than Rs 69 crore the previous year. As of March 31, 2020, its authorized capital stood at Rs 560 crore and its paid-up share capital at Rs 557 crore.
In 2018, the government launched a tender to sell its stake in Pawan Hans. However, the process was withdrawn after ONGC decided to sell its 49% stake in the company along with that of the government. In 2019, a second attempt was made to sell the company, but it did not receive a response from investors.
Last year, the government eased the terms, lowering the minimum equity for potential bidders and the investment hold period and allowing the successful bidder to sell assets after one year.
With PTI inputs