Global oil cos may join ace to invest in BPCL
Anta group as well wo US funds had mitted initial bids uy out the govt’s 98% stake in BPCL
Global oil majors be teaming up with investt funds that are already in race to acquire Bharat oleum Corporation Ltd L), a document detailing needed to complete India’s est privatisation showed. llionaire Anil Agarwal’s nta group as well as two US s—apollo Global and I red Capital—had last year mitted initial bids to buyout overnment’s entire 52.98% e in India’s third-biggest oil er and second-largest fuel ler. etailing the ‘Next Step’, the f Note on BPCL Disinvestt’ said Transaction Advisor Asset Valuer are to submit nception report, bidders to complete due diligence e company and sale pure agreement has to be finalso, over 14% of India’s oil refining capacity and 23% fuel market share. But they hadn’t submitted any bids.
Industry sources said it was possible that one of the global oil majors or a Middle East oil producer may be teaming up with the investment funds already in race.
Ambani’s Reliance Industries Ltd and Adani group are “extremely unlikely” to join the race, a source said.
Steel magnate Lakshmi N Mittal, who runs an oil refinery in Punjab in joint venture with Hindustan Petroleum Corporation Ltd, was considered a potential candidate but sources said he was not interested in BPCL whose acquisition will cost nearly ₹80,000 crore at current market trading price.
The document showed financial bids will be called after submission of asset valuation report and business valuation report by Asset Valuer and Transaction Advisor respectively.
Reserve price will be fixed thereafter and price bids will be opened after that. If its bid is accepted, the bidder quoting the highest price will be called to executive share purchase agreement and make payment.
Open offers required under the extant guidelines/approvals shall follow, it said.
BPCL owns 35.30 million tonnes of oil refining capacity spread over three refineries at Mumbai, Kochi in Kerala and Bina in Madhya Pradesh. It has 18,768 petrol pumps and 6,169 LPG distributors.
Last week,the government said it intends to privatise national carrier Air India and state-owned refiner Bharat
Petroleum Corp Ltd this year, Tuhin Kant Pandey, Secretary, secretary, department of investment and public asset management (Dipam) said at CII Annual Session, news agency ANI tweeted.
“Our disinvestment is back on track. We intend to privatize Air India privatization this year and are also aiming for BPCL privatization this year itself,” said Tuhin Kant Pandey, Secretary, Dipam.
He further added that the government will at least complete the work of financial bids for other candidates like Shipping Corp, BEML, Pawan Hans, and Nilanchal Ispat Nigam, said Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management. The government expects to list stateowned Life Insurance Corp by the end of the fiscal year.