Pawan Hans: After Air India, another government company that was making losses for a long time went into private hands. Pawan Hans, a government company providing helicopter services, was bought by Star 9 Mobility Private Limited. According to the statement of an official, the process of handing over to Pawan Hans is expected to be completed by June.
According to the information, the government last month approved the sale of its 51 per cent stake in Pawan Hans Limited and transfer of management control to Star9 Mobility for Rs 211.14 crore. The official has also said that the allotment letter related to this will be issued next week after which the buyer company will have to take necessary approval of the regulator. The transfer process is expected to be completed in one to one-and-a-half months.
He refuted the allegations that Star9 Mobility did not meet the eligibility criteria, saying that the government had put a condition for the bidder to have assets of at least Rs 300 crore. In comparison, the total assets of the bidding committee for Pawan Hans was Rs 691 crore.
ONGC will get 7 day
The government has 51 per cent stake in helicopter service provider Pawan Hans and 49 per cent stake in public sector company ONGC. ONGC had earlier said that it would offer its entire stake to the successful bidder at a price and conditions decided by the government.
According to an official familiar with the matter, after the government issues the allotment letter to Star Mobility, ONGC will have seven days to offer its shares. Similarly, Star9 Mobility will also be given the same number of days to decide whether to accept ONGC’s offer or not.
Three companies bid
The reserve price was kept at Rs 199.92 for selling 51 percent stake in Pawan Hans. The reserve price was decided jointly by the deal advisor and the property appraiser. The government had received three bids related to it. Star9 Mobility Pvt. Ltd. had made the highest bid of Rs 211.4 crore. The other two bidders had placed bids worth Rs 181.05 crore and Rs 153.15 crore respectively.
30 year old company
Pawan Hans was established in 1985. At present, the company has 42 helicopters out of which 41 are owned by the company. These helicopters are on an average more than 20 years old and three quarters of them are not even being manufactured by OEMs at present.
Pawan Hans, which was making losses for the last three years, had a loss of Rs 69 crore in 2018-19. The next year the company had a loss of Rs 28 crore. The government expects the new buyers to replace the old fleet and improve the company’s performance through necessary investments in Pawan Hans.
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