BPCL Privatization: The government has received 3 initial bids to buy a stake in Bharat Petroleum Corporation (BPCL). BPCL is the second-largest fuel company in the country, in which the government is selling its entire 52.98 percent stake. Central Petroleum Minister Dharmendra Pradhan has informed that for this, 3 companies, including Vedanta, have filed preliminary interest papers (EoI). Apart from Vedanta, 2 other bidders are Global Funds. Apollo Global Management is one of these companies. For this, the last date for filing a letter of interest was 16 November. Previously companies like RIL and Saudi Aramco were also expected to participate in this race, but those companies did not show interest.
Principal gave information
Pradhan said in a program that many companies showed interest to buy a stake in BPCL. Out of them, we have received a letter of interest of 3 companies for EoI bidding process. However, he has refused to give more information about this. BPCL’s 61.65 per cent stake in the Numaligarh refinery of Assam is not included in this sale. Explain, the government has set a target of raising 2.1 lakh crore rupees from disinvestment during the current financial year.
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), tweeted earlier on 16 November that several companies had shown interest in the government’s purchase of 52.98 per cent stake in BPCL. Many companies have filed EoI for this. The bidding process will be extended to the next stage by scrutiny.
Earlier, Vedanta Group had informed that the company can buy stake in Petroleum Corporation Limited. According to the statement issued by the company spokesperson, ‘Vedanta’s EOI for BPCL is to evaluate the potential synergy with our existing oil and gas business.
RIL, Rosneft, Saudi Aram retreated
Reliance Industries did not submit its proposals, while the company was considered to be the main contender for the purchase of BPCL. Similarly, Saudi Aramco, the world’s largest oil company, has not submitted interest papers for this. At the same time, Britain’s BP and France’s Total had plans to enter the Indian fuel market, but they also showed no interest in buying BPCL’s stake. Both companies say that the world is moving away from liquid fuels and in such a situation, they do not want to add refinery assets to their business.
What will happen next
According to sources, now the transaction consultant will assess the bids and see if the bidding company fulfills the eligibility. Whether or not it is able to work financially. This process may take a few days. The bidder will have to make an open offer to buy 26 per cent stake in public.