With its previous three offers finding no takers, the Centre has invited fresh expression of interest (EoI) for its 51 per cent stake in state-run Pawan Hans, by allowing potential buyer to sell assets and change shareholding after 1 year of acquisition of the controlling stake in the helicopter firm.
As previous EoI terms, asset stripping was allowed after two years while change in shareholding was allowed after three years. According to fresh terms, even the buyer can now undertake sale and leaseback of helicopters within one year of the disinvestment provided the money so raised is utilized for business operations.
Earlier, inter-se change in the shareholding among consortium members was not allowed, now it is allowed subject to the Lead member continuing to hold at least 26 per cent equity shareholding in the Consortium SPV for a minimum period of one year from the date of consummation of the proposed transaction and other members continue to hold at least 10 per cent equity. With buyer’s lock-in period of investment reduced to one year from three years, a new business continuity clause has been added that the existing business must continue at least for three years. The due date for submission of EoI is January 19, 2021; those submitting electronically will have to submit hard copy by February 3. Shortlisting will be done on February 17. —FE
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