The Hindu : Govt. invites bids for BPCL advisors

Online edition of India's National Newspaper
Saturday, Mar 22, 2003

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Business

Govt. invites bids for BPCL advisors

NEW DELHI MARCH 21. Kicking-off the process of disinvestment in Bharat Petroleum Corporation Ltd., the Government has invited bids for appointment of a global advisor for sale of 35.2 per cent stake in the oil PSE through public offer.

The Government, which now holds 66.20 per cent stake in BPCL, will offload 10 per cent stake through a domestic offer and 25.20 per cent stake through American Depository Receipts.

Expressions of Interest have been invited from merchant and investment bankers either singularly or as a consortium, with specific expertise in disinvestment through capital market offerings (domestic and ADR) to act as global co-ordinator and advisor to assist the Government in the process, sources said. The last date for submission of EoIs has been fixed for April 4.

In January, the Cabinet Committee on Disinvestment had decided to offload 34.01 per cent stake in Hindustan Petroleum Corporation Ltd to a strategic partner along with the management control and 35.2 per cent stake in BPCL through a public offer in domestic and international markets. Another 5 per cent stake will be offered to employees in the corporation at concessional rates.

While the process of disinvestment in BPCL has now been flagged off with the Government inviting bids for engagement of advisors, the process of disinvestment in the case of HPCL is in a relatively advanced stage. About half a dozen international players including Royal Dutch Shell, BP, Saudi Aramco and Chevron Texaco are believed to have submitted their initial bids for HPCL disinvestment earlier this week.

Even domestic majors such as Reliance and Essar have joined the race for acquiring Government's stake in the oil refining and marketing company, for which HSBC has been appointed as the global advisor. — PTI

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