Canceled: Winning Bidder Disqualified, Pawan Hans’ Strategic Sale Falls Through
In a surprising turn of events, the strategic disinvestment of Pawan Hans has been canceled by the government. The bidding consortium Star9 Mobility Pvt Ltd, which emerged as the winning bidder, has been disqualified due to pending legal cases. The cancellation of the sale has left the future of the helicopter service provider, Pawan Hans, uncertain. Pawan Hans, which is a joint venture between the government and ONGC, was on the verge of a major transition, but the government’s decision to call off the strategic disinvestment has thrown the company’s future into question.
The Department of Investment and Public Asset Management (DIPAM) released a statement on Monday, announcing the government’s decision to cancel the strategic disinvestment. The DIPAM explained that they carefully examined the adverse orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) in relation to the bidding consortium.
“After considering the response of the successful bidder to the show cause notice and with the approval of an alternative mechanism, the government has decided to disqualify the successful bidding consortium, M/s Star9 Mobility Pvt Ltd, from the process of strategic disinvestment of Pawan Hans Ltd,” stated the DIPAM. “Furthermore, the current Expression of Interest (EOI) process for strategic disinvestment stands annulled.”
Pawan Hans to Star9 Mobility Pvt Ltd
This setback comes after last year’s decision by the government to sell Pawan Hans to Star9 Mobility Pvt Ltd for a sum of Rs 211.14 crore. The consortium, consisting of Big Charter Private Ltd, Maharaja Aviation Private Ltd, and Almas Global Opportunity Fund SPC, had secured the winning bid. However, in May, the cancellation of the strategic disinvestment revealed that Almas Global Opportunity Fund SPC, the lead member of the consortium, was facing a pending case at the NCLT. Consequently, the pending legal case against Almas Global Opportunity Fund SPC put the sale process of Pawan Hans on hold.
The cancellation of the strategic disinvestment also raises questions about the future of Pawan Hans. The company was on the verge of a major transition, with new owners expected to bring fresh investment and expertise to the table. Now, with the sale falling through, Pawan Hans’ path ahead remains uncertain.
The government made its decision in consultation with the Alternative Mechanism, comprising the Minister of Road Transport & Highways, the Minister of Finance, and the Minister of Civil Aviation. It is unclear at this point whether the government will explore other avenues for the strategic disinvestment of Pawan Hans or consider any alternative plans for the company.
The news of the cancellation has sent shockwaves through the aviation and investment sectors, as stakeholders eagerly awaited the outcome of the strategic disinvestment process. The future of Pawan Hans, once again, hangs in the balance as the government reevaluates its approach to finding a suitable buyer for the helicopter service provider.
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