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Money > PTI > Report January 30, 2002 | 1405 IST |
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IDBI invites EoIs for DPC saleIDBI on Wednesday invited expressions of interest from Indian as well as foreign corporates interested in acquiring 85 per cent stake in Dabhol Power Company. The EoIs are to be submitted on or before February 7. "This invitation is merely an interest discovery mechanism thereby seeking only serious bidders interested in both the incomplete power plant and LNG regassification terminal, an IDBI official said in Mumbai. The EoIs have been invited from companies with a minimum net worth of $200 million or its equivalent in Indian currency or a group/consortia with a networth of double the amount, having requisite experience in managing and operating both the power and LNG plants, he added. "IDBI has already received EoIs from three companies," the official said. He said in case of multiple bids, DPC, which is the final decision making authority, would shortlist the parties based on their EoIs for taking up the process of due diligence. The contenders would have to first submit the EoI, deposit a non-refundable amount of $100,000 (Rs 4.85 million) and then sign the confidentiality agreement for carrying out due diligence, the official said. Three bidders, Tata Power Company, BSES Ltd and Gas Authority of India Ltd, have already submitted their bids and would not need to resubmit their EoIs. The official said interested parties would be provided with details of the project to base their parameters for the bid and companies would sign the confidentiality agreement within seven days after being shortlisted. The prospective bidders would also be provided access to DPC's data room in London and allowed to visit to the incomplete plant located in Guhagar for due diligence. "The schedule for the entire due diligence process would be decided by DPC after the money is deposited with the financial institution," the official said. Currently, IDBI and Overseas Private Investment Corporation are engaged in drawing up the proposed confidentiality agreement to be signed with the entities who have evinced interest in the $3 billion project. Indian financial institutions have an exposure of over Rs 62 billion in the project promoted by now bankrupt US energy trading firm Enron and have over Rs 50 billion loans locked in it. Houston-based bankrupt Enron Corporation currently holds a majority 65 per cent stake in the project while 15 per cent is with the state electricity board. The remaining 20 per cent has been split between Bechtel and GE. Earlier, IDBI chairman P P Vora had said that entire process would be completed by the end of this financial year. IDBI has mandated Rotschild, DSP Merill Lynch along with Suisse Securities to act as global advisors for the deal. ALSO READ:
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