Govt. approves Pawan Hans sale at Rs. 414-crore valuation
The Hindu
Deal will net ₹211.14 crore for the Centre and ₹202.86 crore to ONGC
The government on Friday approved the sale of its stake in Pawan Hans Limited along with transfer of management control to an entity called Star9 Mobility Pvt. Ltd. at a price of ₹211.14 crore, pegging the firm’s total value at ₹414 crore.
The government had attempted the sale of Pawan Hans thrice earlier, after the Cabinet Committee on Economic Affairs approved the sale of its 51% stake in the firm in late 2016. The process for the present transaction was kicked off in December 2020 when expressions of interest were invited from bidders.
The winning bidder, Star9 Mobility is a consortium of Big Charter Private Limited, Maharaja Aviation Private Limited and Almas Global Opportunity Fund SPC, the Finance Ministry said.
“With this privatization, it is expected that the strategic buyer will revitalize the company by replacing the aging fleet through infusion of fresh capital and improve the performance of the company,” the ministry said in a statement, adding that a Letter of Award will be issued soon, followed by the signing of the Share Purchase Agreement to close the transaction
A joint venture between the central government and ONGC, which owns 49% in the firm, Pawan Hans provides helicopter and aero mobility services and has incurred losses for three successive financial years from 2018-19 to 2020-21. Pawan Hans has a fleet of 42 helicopters, 41 of which are owned by the firm and have an average age of over 20 years.
The Alternative Mechanism, empowered by the Cabinet Committee on Economic Affairs, comprising Union Road Transport and Highways Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Civil Aviation Minister Jyotiraditya M. Scindia, approved the sale to the entity bidding the highest among three financial bids received.
ONGC had earlier decided to offer its entire shareholding to the successful bidder identified in the strategic disinvestment transaction, on the same terms and price. This would translate into a ₹202.86 crore receipt for the oil major.
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