Big oil absent but government says ‘multiple’ suitors in queue for BPCL
NEW DELHI: Mukesh Ambani’s Reliance Industries Ltd, global majors BP, Saudi Aramco and Total have opted to stay out of the race to acquire the country’s second-largest public sector oil refiner and fuel retailer, Bharat Petroleum Corporation Ltd, but the government put up a brave face by saying it received “multiple” EoIs (expressions of interest) from prospective investors at the close of the deadline on Monday.
“The transaction (BPCL’s disinvestment) will move to the second stage after scrutiny by the transaction advisor,” DIPAM (department of public asset and management) secretary Tuhin Kanta Pandey tweeted without specifying the number of suitors or identifying them.
The second stage entails evaluation of the EoIs to see whether they meet the prescribed financial and other criteria for shortlisting. In the next stage, the shortlisted entities will be asked for RFP (request for proposal) and financial bids. But this may take months as the pandemic is making visits to plants, infrastructure and other assets difficult.
Broadly, a company must have a minimum net worth of $10 billion to be eligible to bid for the government’s entire stake in the company along with management control. Consortiums of not more than four entities can also bid but the lead member must hold a 40% stake in the grouping, while others must meet the minimum net worth of $1 billion.
