After three failed attempts to disinvest, the central government on Friday, 29 April, approved the sale of the helicopter services provider, Pawan Hans Ltd along with management control to Star9 Mobility Pvt Ltd. A three-way consortium between Big Charter Private Limited, Maharaja Aviation Private Limited, and Almas Global Opportunity Fund SPC.
The disinvestment is the second major sale from the government’s aviation portfolio in the last 12 months, with Air India having gone to Tata Group in January this year.
Pawan Hans currently operates 42 helicopters and is a 51:49 joint-venture between the government and state-owned Oil & Natural Gas Corp Ltd (ONGC).
ONGC had earlier decided to offer its entire shareholding to the successful bidder, on the same price and terms as the government. The government had received three financial bids for the company in December last year.
The Ministry of Finance said in a press release, “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.”
While Mumbai-based Big Charter Pvt Ltd runs the ‘flybig’ airline on UDAN routes, Delhi-based Maharaja Aviation Pvt Ltd is a helicopter charter company, and Almas Global Opportunity Fund is a Cayman Islands-based fund.
Meanwhile, the Alternative Mechanism for Pawan Hans disinvestment, which comprises Road Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, and Civil Aviation Minister Jyotiraditya Scindia, had also granted clearance to the consortium’s bid.
The official statement further read, “The strategic disinvestment transaction was implemented through an open, competitive bidding process supported by a multi-layered consultative decision-making mechanism involving Inter-Ministerial Group, Core Group of Secretaries on Disinvestment and the empowered Alternative Mechanism,” The Indian Express reported.
After the government issues the Letter of Award, the signing of the Share Purchase Agreement and closing of the transaction will take place.
(With inputs from The Indian Express.)
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