New Delhi: The government’s plan to privatize Bharat Petroleum (BPCL) experienced rough weather with bidders struggling to find partners and spread their financial risk, according to people who are familiar with this problem.
Three Vedanta Applicants, Apollo Global Management and I Squared Capital – Speak with Global Energy giants and sovereignty and retirement funds, but have not been able to resolve partners, said people, asking not to be identified as their deliberations.
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Some bidders find it difficult to invest because of the sustainability rules that make it more difficult for them to buy shares in oil refiners, said several people.
Fresh obstacles to sell all government shares can involve several euphoria produced by Indian air sales recently to the Tata Group and slow down the country’s largest privatization drive.
The sale of the state-run refiner-cum-fuel retailer will be taken around $ 13 billion for shareholders and other shareholders.
BPCL shares fell 3.5% to Rs 432 in BSE, the most in more than a month, after the Bloomberg report.
Massive price labels mean bidders and the government want a consortium with stronger technical and financial muscles for transactions, said people.
A spokesman at the Ministry of Finance and BPCL were not available for comments, while Apollo Global refused to comment.
Representatives in Vedanta and I squared did not reply to emails.
The encouragement towards green energy and pressure from investors to trim emissions is to hold the company from making large investments in fossil fuels.
Bloomberg.