Govt calls bids for BPCL advisors

Kicking-off the process of divestment in Bharat Petroleum Corp, government has invited bids for appointment of a global advisor for sale of 35.2 per cent stake in the oil PSU through public offer.

Government, which currently holds 66.20 per cent stake in BPCL, would offload 10 per cent stake through a domestic offer and 25.20 per cent stake through American Depository Receipt.

Expressions of interest have been invited from merchant and investment bankers either singularly or as a consortium, with specific expertise in divestment through capital market offerings (domestic and ADR) to act as global co-ordinator and advisor to assist government in the process, sources said.

The last date for submission of EoIs has been fixed for April 4, 2003.

In January this year, the Cabinet Committee on Divestment had decided to offload 34.01 per cent stake in Hindustan Petroleum Corporation Ltd to a strategic partner along with management control, and 35.2 per cent stake in BPCL via a public offer both in domestic and international market.

Another five per cent stake would be offered to employees in both the corporations, at concessional rates.

While the process of divestment in BPCL has now been flagged off with Government inviting bids for engagement of advisors, the process of divestment in the case of HPCL is in a relatively advanced stage.

About half a dozen international players including Royal Dutch Shell, BP, Saudi Aramco and Chevron Texaco are believed to have submitted initial bids for HPCL divestment earlier this week.

Even domestic majors like Reliance and Essar have joined the race for acquiring Government's stake in the oil refining and marketing company, for which HSBC has been appointed as the global advisor.