BPCL bidders get easier SPV option

NEW DELHI: Prospective bidders for the entire 52.9% governments stake in Bharat Petroleum (BPCL) will have the option to float a special purpose vehicle (SPV) any time after putting in the EoI, but the winner will have to incorporate it before signing the share purchase agreement (SPA).
Latest amendments to Dipam’s (Department of investment and public asset management’s) ‘preliminary information memorandum’ for prospective investors on Friday said if a company submits the EoI but subsequently decides to use the SPV as the strategic investor, the parent and the subsidiary will both have to sign the SPA.
If the bidder is a subsidiary, which passed the $10-billion net worth eligibility criteria on the basis of the parent company’s books, and subsequently floats an SPV for acquiring the government’s stake, all the three will have to sign the SPA. Besides, all three entities will also have to ensure they do not get disqualified as per the listed terms.