The government has extended the deadline for submission of expression of interest (EoI) for selling its stake in Bharat Petroleum Corp Ltd (BPCL) by over a month to November 16. This is the fourth time the government has given more time to potential bidders, owing to the Covid-19 pandemic. The previous end date was September 30.
“In view of further requests received from the interested bidders and the prevailing situation arising out of COVID-19 pandemic, the last date for submission of EoIs is further extended to 16th November, 2020 (by 5.00 PM),” the department of investment and public asset management said in a statement on Wednesday.
The government had issued several clarifications in BPCL stake sale, allowing interested parties to float a special purpose vehicle or SPV at any time after submitting an expression of interest, but before signing of the share purchase agreement by all parties.
Earlier, the interested parties were given a week to create the SPV.
In another clarification, the government said it will consider the consolidated net worth of a bidder including that of its parent if the bidder has placed the bid on the basis of its parent.
Also, in case of consolidated financials, non-controlling interest (NCI) shall be included in determining consolidated net worth. The initial eligibility criteria of a bidder or a consortium of not more than four firms, to have net worth of $10 billion remains unchanged.
Further, interested parties that evince interest in bidding for BPCL would be required to take necessary security clearance at the request for proposal (RFP) stage, instead of applying for security clearance at the time of submission of financial bids.
The government has also clarified that if bids from entities in a jurisdiction outside India are considered, “it should not be construed as approval from the Government of India on any tax issues relating to foreign investments in India that may arise in relation to the proposed transaction.”
Bidders have to comply with relevant tax laws and procedures, it added.
Global oil and gas behemoths such as Russia’s Rosensoft, Saudi Aramco, Exxon Mobil and Abu Dhabi National Oil Co are expected to show interest in the company.
The government’s entire 52.98% stake in BPCL, including management control, has been put on the block. The sale will not include BPCL’s equity shareholding of 61.65% in Numaligarh Refinery.
The government has set a disinvestment target of Rs 2.1 lakh crore for FY 2020-21. Of this, Rs 1.2 lakh crore is expected to come from the disinvestment of public sector undertakings and Rs 90,000 crore from sale of stake in financial institutions.
