Kicking off the process for sale of HPCL stake to ONGC, the government has invited bids for appointing merchant bankers and legal consultants for the Rs 28,000 crore deal.
The Department of Investment and Public Asset Management (DIPAM) has invited expression of interest from professional consulting firms and investment/merchant bankers for managing the disinvestment process.
The Cabinet Committee on Economic Affairs (CCEA) had on July 19 given ‘in-principle’ approval for strategic sale of the government’s existing 51.11 per cent stake in Hindustan PetroleumBSE 2.00 % Corp Ltd (HPCL) to Oil and Natural GasCorp (ONGC) along with the transfer of management control.
The two merchant bankers would assist the government on “modalities of disinvestment and the timing” as well as recommend the need for intermediaries required for the process, the notice said.
They would do business valuation of HPCL, structure the transaction, suggest measures to fetch optimum value and assess positioning of the strategic sale, it said.
The legal adviser would review and advise on all legal contracts, titles of properties/assets/real estate, intellectual property rights and contracts with employees.
It will also draft transaction related documents and advise on the structure of the transaction including compliance with SEBI guidelines and stock exchange listing norms.
Bids have been invited for consultants and legal adviser by August 10, the notice said.
An official said the government is keen to complete the transaction within the current fiscal.
Post-merger all refining units of ONGC will be accumulated under HPCL, making it India’s third largest oil refiner after Indian OilBSE -0.26 % Corp (IOC) and Reliance Industries
Oil Minister Dharmendra Pradhan and Road Transport and Highways Minister Nitin Gadkari are other members of the panel.