An official said on Friday that the transfer of loss-making helicopter service provider Pawan Hans to Star9 Mobility Pvt Ltd is expected to be completed by June.
The highest bidder, Star9 Mobility Pvt Ltd, a consortium of Big Charter Private Limited, Maharaja Aviation Private Limited, and Almas Global Opportunity Fund SPC, quoted Rs 211.14 crore, which was higher than the government's reserve price of Rs 199.92 crore based on the transaction adviser and asset valuer's valuation.
Refuting claims from some quarters that Star9 Mobility Pvt Ltd did not match the qualifying requirements, the official noted that the successful bidder consortium’s net value was Rs 691 crore, compared to the Rs 300 crore requirement imposed by the government.
The partnership submitted preliminary proposals at the Expression of Interest (EoI) stage in February 2021, according to the person who explained the bidding process.
The group then transformed itself into a special purpose vehicle (SPV) and submitted financial bids in October 2021. The consortium members, on the other hand, have a long track record of success.
Maharaja Aviation Pvt Ltd and Big Charter Pvt Ltd were established in 2008 and 2014, respectively, while Almas Global Opportunity Fund SPC has been operating since 2017 under Almas Capital Ltd.
According to the official, Indian nationals own all three organisations. Almas Global Opportunity Fund SPC owns 49 percent of the SPV, while Big Charter and Maharaja Aviation control 26 percent and 25 percent, respectively.
The government approved selling its 51 percent ownership in helicopter services provider Pawan Hans Ltd (PHL) along with a transfer of managerial control to Star9 Mobility Private Ltd for Rs 211.14 crore late last month.
"The notice of award will be sent out next week, after which the buyer must obtain regulatory approval." The changeover is scheduled to take around a month and a half," according to the official. The bidding consortium's net value was Rs 691 crore when the EoI was submitted, and it climbed to Rs 710 crore during the RFP stage, according to the official. The government and ONGC have a 51:49 joint venture called PHL.
ONGC had stated that it will sell its whole interest in the strategic disinvestment transaction to the winning bidder at the same price and terms set by the government.
The insider went on to say that after the government issues a letter of award to Star9 Mobility, ONGC will have seven days to offer its shares to the business.
Star9 Mobility will have an additional seven days to determine whether to accept ONGC’s offer.
The corporation must determine whether or not to accept ONGC’s offer, according to the official.
The official noted that all three businesses in the consortium had submitted their annual financial accounts throughout the EoI and RFP rounds, and that all due diligence would be completed and funds sent to the government before the share purchase agreement (SPA) was signed. The SPV had to be formed by the consortium of bidders before the SPA could be signed, according to the official.
The consortium in this case opted to become an SPV before submitting financial bids. The official explained, “A consortium is a loose agreement, while an SPV is a legal framework.”
The government received three proposals for the Pawan Hans auction in December of last year. The other two offers were for Rs 181.05 crore and Rs 153.15 crore, respectively.
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