By ICN GroupPetro Chemical, April 01, 2020
Govt extends BPCL bid deadline to June 13
The government had earlier this month invited expression of interest (EoI), or bids showing interest in buying its stake, by May 2
The government on Tuesday extended the deadline for bidding to buy its entire 52.98 per cent stake in the country's second-biggest oil refiner, Bharat Petroleum Corp Ltd (BPCL), by over a month to June 13. The government had earlier this month invited expression of interest (EoI), or bids showing interest in buying its stake, by May 2.
This now has been extended to June 13 in "view of the requests received from the interested bidders and the prevailing situation arising out of COVID-19", an official notice said.
Accordingly, the last date for submission of written queries has been pushed back to May 16 from the earlier deadline of April 4.
"The Government of India is proposing strategic disinvestment of its entire shareholding in BPCL comprising of 114.91 crore equity shares, which constitutes 52.98 per cent of BPCL's equity share capital along with transfer of management control to a strategic buyer (except BPCL's equity shareholding of 61.65 per cent in Numaligarh Refinery Limited)," the notice inviting offer said.
NRL stake will be sold to a state-owned oil and gas firm.
The bidding will be a two-stage affair, with qualified bidders in the first EoI phase being asked to make a financial bid in the second round.
Public sector undertakings (PSUs) "are not eligible to participate" in the privatisation, the offer document said.
Any private company having a net worth of USD 10 billion is eligible for bidding and consortium of not more than four firms will be allowed to bid, it said.
According to the bidding criteria, the lead member of the consortium must hold a 40 per cent stake and others must have a minimum net worth of USD 1 billion.
Changes in the consortium are allowed within 45 days but the lead member cannot be changed, it added.
The government has appointed Deloitte Touche Tohmatsu India LLP as its transaction advisor for the strategic disinvestment process.