Vedanta, 2 international funds submit EoIs to acquire BPCL

• Vedanta's EoI for BPCL is to evaluate potential synergies with our existing oil and gas business, said the company

• On November 16, the DIPAM Secretary had said that multiple EoIs have been received by the transaction adviser

    
New Delhi: Vedanta Group has put in an Expression of Interest (EoI) for buying the Centre's 52.98 percent stake in Bharat Petroleum Corporation Ltd (BPCL), Vedanta said in an official statement on Wednesday. "Vedanta's EoI for BPCL is to evaluate potential synergies with our existing oil and gas business. The EoI is at a preliminary stage and exploratory in nature," the statement said. The deadline for submitting EoIs for BPCL sale closed on November 16. 

The news comes day after media reports claimed that two international funds have also submitted EoIs for acquiring BPCL, while oil majors like Reliance Industries Limited (RIL), Saudi Aramco, Total, Rosneft have stayed away from the process.

DIPAM Secretary: PSUs will not be allowed to take part

In a statement released on Twitter on Wednesday evening, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey debunked media reports that had claimed that the government may ask Indian Oil and ONGC to come in and buy BPCL if the sale does not get desired valuations. Pandey said, "An unfounded story by a news-wire agency incorrectly speculates that public sector companies may be allowed to bid for BPCL disinvestment. The EoI was invited only from the private sector. With the receipt of multiple EoIs, process has advanced to the Second stage."

The backdrop

On November 16, the DIPAM Secretary had said that multiple EoIs have been received by the transaction adviser and the sale process will now move to the second stage after evaluation of EoIs. Sources who spoke to PSU Watch on the condition of anonymity said that sufficient interest has been received from both domestic and global entities and there will be no more extensions in the BPCL sale deadline.

ALSO READ: Govt receives multiple EoIs, no extension in BPCL sale deadline, say sources

BPCL sale will give the buyer access to 15.3 percent of India's refining capacity and 22 percent of the fuel retail market share in the world's fastest-growing energy market. The privatisation of the company is essential for the government to meet its disinvestment target of Rs 2.1 lakh crore for the current financial year.

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