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Another loss-making government company sold, Star9 Mobility to take over from next month

The deal will be completed by June.

The government had received three bids. Star9 Mobility Pvt. Ltd. made the highest bid with a bid of Rs 211.4 crore.

Another loss-making government company went into private hands. Helicopter Services Company Pawan Hans (Pawan Hans) was bought by Star9 Mobility Pvt Ltd. An official said, the process of handing over to Pawan Hans is expected to be completed by June. The government last month bought Star9 Mobility (Rs.Star9 Mobility) to sell its 51 per cent stake in Pawan Hans Limited and transfer management control. The allotment letter will be issued next week after which the buyer company will have to take necessary regulatory approvals, the official said. The transfer process is expected to be completed in one to one-and-a-half months.

He refuted the allegations that Star9 Mobility did not meet the eligibility criteria, saying that the government had put a condition that the bidder should have assets of at least Rs 300 crore. In comparison, the total assets of the bidding committee for Pawan Hans was Rs 691 crore.

The government holds 51 per cent stake in Pawan Hans and 49 per cent stake in public sector company ONGC. ONGC (Oil and Natural Gas Corporation) had earlier said that it would offer its full stake to the successful bidder at a price and terms fixed by the government.

According to the official, after the government issues the allotment letter to Star Mobility, ONGC will have seven days to offer its shares. Similarly, Star9 Mobility will also be given the same number of days to decide whether to accept ONGC’s offer or not.

Bought 51% stake for Rs 211 crore

The reserve price for the sale of 51 percent stake in Pawan Hans was kept at Rs 199.92. The reserve price was determined by the deal advisor and property appraiser.

The government had received three bids. Star9 Mobility Pvt. Ltd. made the highest bid with a bid of Rs 211.4 crore. Two other bidders had placed bids worth Rs 181.05 crore and Rs 153.15 crore, respectively.

Pawan Hans was serving for 3 decades

Pawan Hans was established in 1985. At present the company has 42 helicopters out of which 41 are owned by the company. The average lifespan of these helicopters is more than 20 years and three quarters of these are currently not being manufactured by OEMs.

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The company is running in loss for the last three years. Pawan Hans had a loss of Rs 69 crore in 2018-19. At the same time, the next year the company had a loss of Rs 28 crore. According to the government, it is expected that new buyers will replace the old fleet through necessary investments in Pawan Hans and improve the performance of the company.

Source: www.tv9hindi.com

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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