The handover of loss-making helicopter service provider Pawan Hans to Star9 Mobility Pvt Ltd is likely to get over by June, an official said on Friday.
Last month, the government approved selling its 51 per cent stake in helicopter services provider Pawan Hans Ltd (PHL) along with the transfer of management control for Rs 211.14 crore to Star9 Mobility Private Ltd.
"The letter of award will be issued next week after which the buyer will have to get regulatory clearance. The handover process is expected to be completed within one-and-a-half months," the official said.
Refuting allegations of Star9 Mobility not meeting eligibility criteria, the official explained that the networth of the consortium which bid for Pawan Hans was Rs 691 crore against the requirement of Rs 300 crore mandated by the government.
PHL is a 51:49 joint venture of the government and ONGC.
ONGC had earlier said it will offer its entire shareholding to the successful bidder identified in the strategic disinvestment transaction on the same price and terms decided by the government.
The official further said that after the issuance of the letter of award by the government to Star9 Mobility, ONGC will have 7 days time to offer their shares to the company.
Star9 Mobility will also have another 7-day time to decide whether they would accept ONGC’s offer. It is up to the company to decide whether they want to accept ONGC’s offer, the official added.
The Reserve Price for the sale of 51 per cent shareholding of PHL was fixed at Rs 199.92 crore on the basis of valuation carried out by the transaction adviser and asset valuer.
The government had received three bids for the Pawan Hans sale.
M/s Star9 Mobility Pvt 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.