Panel to seek price bids for 5 PSUs

NEW DELHI: The setback to the privatisation of oil PSUs — HPCL and BPCL — notwithstanding, the disinvestment ministry has decided to finalise the transaction documents of five enterprises and call for price bids.
The Cabinet Committee on Disinvestment which meets on Friday is to finalise the shareholders’ agreement and share purchase agreement of two oil ministry administered PSUs — Engineers India and Balmer Lawrie Co. The CCD will also take up for finalisation the shareholders agreement and share purchase agreement of two subsidiaries of Andrew Yule and Co.
, Hooghly Printing Company and Tidewater Oil. The transaction documents of Hindustan Newsprint is also to be finalised on Friday by the ministers’ panel, paving way for the invitation of price bids from potential bidders.
The government is offloading 51% equity stake in Engineers India, 61.8% in Balmer Lawrie and Co, 27.7% in Tidewater Oil, 100% in Hooghly Printing and 74% in Hindustan Newsprint.
EIL divestment is likely to attract fairly aggressive bidding by the L&T-Gail combine. Industry sources feel that following the demerger of the cement business of L&T, the engineering major would be very keen to acquire EIL. Others in the fray for EIL include ONGC-Bhel.
As for Kolkata-based Tidewater Oil which markets Veedol lubricant, oil PSUs HPCL and BPCL are among those who have evinced interest in acquiring the 27.7% stake.
Balmer Lawrie too had attracted fair amount of interest from prospective bidders although not many are said to be interested in acquiring the diversified company.