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Government to extend BPCL EoI date for the third time

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The federal government is about to extend the deadline – for the third time – for inviting expression of curiosity for Bharat Petroleum Corp Ltd (BPCL), by a month, giving extra time to potential bidders.

The present deadline will finish on July 31, after being prolonged from June 13 earlier.

An official stated that the extension could be given since, “potential bidders had sought for extra time to consider their participation due to Covid 19 pandemic.”

Tuhin Kanta Pandey, secretary of division of funding and public asset administration (DIPAM) had just lately stated that the authorities’s divestment drive had hit a roadblock pandemic had shut down worldwide journey and website visits, impacting the time taken by traders to resolve on strategic choices. “Traders favor to interact deeply with the authorities which entails journey, d website visits, worldwide journey, which has stopped due to the pandemic.”

The federal government desires to promote 53.29% stake to potential traders, together with switch of administration management, to a strategic purchaser however the sale is not going to embrace BPCL’s fairness shareholding of 61.65% in Numaligarh Refinery.

For 2020-21, the authorities has set a disinvestment goal of Rs 2.10 lakh crore. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and one other Rs 90,000 crore from stake sale in monetary establishments.

For BPCL, the authorities has set $10 billion minimal web price as one among the eligibility standards for bidders, whereas explicitly excluding public sector items having 51% authorities possession from the bidding course of.

The consortium of traders that may bid for taking a stake in the oil refiner and marketer can not have greater than 4 members, the place every will need to have a minimal web price of $1 billion and the lead member ought to have 40% of the web price proportionately, the circumstances have mandated.

The federal government will specify the circumstances – together with worker safety, asset stripping, enterprise continuity, lock-in interval of the shares purchased and shareholding of consortium members – moreover obligations and liabilities of the chosen purchaser, and of the consortium members, in the request for proposal or the share buy settlement.

The confirmed purchaser is required to make an open provide to public shareholders to purchase a minimal 26% share of BPCL. Deloitte Touche Tohmatsu India LLP has been appointed as the transaction advisor and supervisor of the strategic disinvestment course of.

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