Strategic Buyer Approved For Disinvestment Of Pawan Hans

The government has approved the highest bid of s Star9 Mobility Private Ltd for sale of entire GoI's shareholding (51% of shareholding) of Pawan Hans Limited (PHL) and transfer of management control.

PHL is a joint venture of GoI and ONGC providing helicopter and aero mobility services. GoI holds 51% of the shares in the company and ONGC holds the balance 49%. ONGC has earlier decided to offer its entire shareholding to the successful bidder identified in the GoI strategic disinvestment transaction, on the same price and terms as GoI.

CCEA had approved the strategic disinvestment of entire GoI stake in PHL in October, 2016. The transaction had been attempted thrice in the past. In the first round, the Preliminary Information Memorandum (PIM) was issued on 13 October 2017 seeking Expressions of Interest (EOI). Out of four EOIs received, only one was found eligible and the transaction was cancelled. In the second round, PIM was issued seeking EOIs on 14 April, 2018 and two bidders were found eligible and were issued the Request for Proposal (RFP). Finally, however, a single, incomplete bid non-compliant with the RFP was received. In the third round, PIM was issued seeking EOIs on 11 July 2019. Out of four EOIs received, only one was found eligible and the process was cancelled. This is the fourth iteration with request for Expressions of Interest (EoI) invited on 8 December 2020. Seven EoIs were received and four interested bidders were shortlisted as qualified bidders. After detailed due diligence, the qualified bidders were invited to submit financial bids. Three financial bids were received.

As per extant procedure, the Reserve Price for sale of 51% shareholding of PHL was fixed at Rs 199.92 crore, on the basis of valuation carried out by experts (transaction adviser and asset valuer). Thereafter, the three bids were opened in the presence of the bidders. All three bids were found to be valid. M/s Star9 Mobility Private Ltd, a consortium of M/s Big Charter Private Limited, M/s Maharaja Aviation Private Limited and M/s Almas Global Opportunity Fund SPC; emerged as the highest bidder quoting Rs 211.14 crore, which was above the Reserve Price. The other two bids were for Rs 181.05 crore and Rs 153.15 crore. Following due deliberations, the financial bid of M/s Star9 Mobility Private Limited has been accepted by the Government.