The Union government has issued a Global Invite for Expression of Interest for disinvestment in Bharat Petroleum Corporation Limited (BPCL) from prospective bidders with a minimum net worth of $10 billion as of Saturday.

The EoI submissions can be made till May 2, whereas investor queries will be entertained till April 4. Another condition pertains to a maximum of four members are permitted in a consortium, and the lead member must hold 40 per cent in proportion. Other members of the consortium must have a minimum $1 billion net worth.

The EOI allows changes in the consortium within 45 days, though the lead member cannot be changed. The successful bidder for Bharat Petroleum Corporation Limited (BPCL) privatisation will have to make an open offer to public shareholders to acquire a minimum 26 per cent shares in the public sector company.

The open offer price will be the highest of the negotiated price under an agreement and volume-weighted average price paid by the acquirer and persons acting in concert (PAC) in the 52 weeks preceding the public announcement for open offer.

The open offer price can also be the highest price paid by the acquirer or PAC for any acquisition during the 26 weeks preceding the PA.

The other formula is Volume Weighted Average Price (VWAP) over the 60 trading days prior to the date of the PA (for frequently traded shares), the bid documents said.

The CSB (Confirmed Select Bidder) will not be allowed to make the open offer, conditional on any minimum level of acceptance. The CSB will be required to put in escrow in cash the entire consideration payable under the open offer, assuming full acceptance of the open offer.

The current SEBI norms are that acquisition of an aggregate of 25 per cent or more shares or voting rights in a listed entity would trigger an open offer and also acquisition of control would trigger an open offer.

Indo-Asian News Service