BPCL disinvestment update: Shortlisted firms can bid via SPV, govt clarifies

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September 5, 2020 8:24 AM

“The SPV can be formed at any time after submission of expression of interest (EoI) but prior to signing of the SPA. Both the interested party (IP) and the SPV will have to sign the SPA in case IP is selected as the strategic investor,” the department of investment and public asset management said in a pre-bid clarification.

BPCL disinvestment update, BPCL, SPV, Dipam, BPCL bidding, latest news on BPCL, BPCL share priceAmong the strategic deals, the Centre is banking on sale of its entire 52.98% stake in BPCL to raise around Rs 80,000 crore or 40% of the FY21 disinvestment target of Rs 2.1 lakh crore for FY21.

Stepping up the processes for strategic disinvestment of government’s entire stake in fuel retailer and refiner BPCL, the Centre on Friday clarified that any shortlisted bidder can float a special purpose vehicle (SPV) to put final bids for the firm before entering into a share purchase agreement (SPA).

“The SPV can be formed at any time after submission of expression of interest (EoI) but prior to signing of the SPA. Both the interested party (IP) and the SPV will have to sign the SPA in case IP is selected as the strategic investor,” the department of investment and public asset management said in a pre-bid clarification.

Among the strategic deals, the Centre is banking on sale of its entire 52.98% stake in BPCL to raise around Rs 80,000 crore or 40% of the FY21 disinvestment target of Rs 2.1 lakh crore for FY21.

Dipam had recently extended the deadline for EOI for the BPCL stake from potential buyers till September 30. In another clarification on definition of net worth Dipam said that “for avoidance of doubt, it is clarified that the net worth of an IP will be considered on a consolidated basis. And if an IP is found to be satisfying net worth criteria on the basis of its parent’s net worth, the consolidated net worth of its parent will be considered.”

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