Star 9 Mobility to buy 51 per cent govt stake in Pawan Hans

Government has approved the highest bid of Star 9 Mobility Private Limited for sale of entire 51 percent of government's shareholding of Pawan Hans Limited and transfer of management control. The Alternative Mechanism, empowered by the Cabinet Committee on Economic Affairs, comprising Union Road Transport and Highways Minister Nitin Gadkari, Union Finance Minister Nirmala Sitharaman and Union Civil Aviation Minister Jyotiraditya Scindia approved the strategic buyer for the disinvestment of Pawan Hans Limited. “The transaction now moves to the concluding stage. The next steps are issuing of the Letter of Award, signing of the Share Purchase Agreement and closing of the transaction,” the finance ministry said in a statement.
Pawan Hans Limited is a joint venture of Government and Oil and Natural Gas Corporation Limited. Government holds 51 percent of the shares in the company and ONGC holds the balance 49 percent shareholding. ONGC has earlier decided to offer its entire shareholding to the successful bidder identified in the government's strategic disinvestment transaction. Pawan Hans Limited has incurred losses in the last three financial years. The company has a fleet of 42 helicopters. The CCEA had approved the strategic disinvestment of entire GoI stake in PHL in October, 2016. The transaction had been attempted thrice in the past. In the fourth iteration with request for Expressions of Interest (EoI) invited on December 8, 2020, seven EoIs were received and four interested bidders were shortlisted as qualified bidders. After detailed due diligence, three financial bids were received.

Star9 Mobility, a consortium of Big Charter Private Limited, Maharaja Aviation Private Limited and Almas Global Opportunity Fund SPC has won the bid to acquire 51% stake in state-run helicopter firm Pawan Hans for Rs 211.14 crore, 5.6% higher than the reserve price set for the deal. Star9 Mobility outbid two other bidders, who quoted Rs 181.05 crore and Rs 153.15 crore for the government’s stake. After Air India privatisation in January, this will be the second instance of privatisation of a state-run firm in 2022.