The Govt of Punjab has approved the following procedure for disinvestment in the State :-
- Proposals for disinvestments in any Public Sector Undertaking (PSU),based on the recommendations of the Disinvestment Commission or prepared suo-moto by the Directorate of Disinvestment, in consultation with the Administrative Department, in accordance with the declared Disinvestment Policy of the Government , shall be placed for consideration of the Cabinet Committee on Disinvestment (CCD) with the recommendations of the Core Group of Officers on Disinvestment (Core Group).
- After CCD clears the disinvestments proposal, selection of the Advisors will be done by the Directorate of Disinvestment, with the concurrence of the Core Group, through global competitive bidding process, for assisting in the implementation of the disinvestment decision. Detailed procedure is at Annexure-A.
- The Advisors will assist the Government in issue of advertisement in leading national and international newspapers/magazines/journals, for inviting Express of Interest from Prospective strategic Partners.
- After receipt of the EOI, Prospective Bidders will be short listed by the Core Group, according to the pre-qualification criteria in EOI advertisement.
- The Advisors, after due diligence of the PSU will prepare the Information Memorandum in consultation with the concerned PSU, which will be given to the short listed Prospective Bidders, after they have entered into a Confidentiality Agreement.
- The draft Share Purchase Agreement and the Shareholder Agreement will be prepared by the Advisors, with the help of the Legal Advisors, and given to the Prospective Bidders for eliciting their reaction.
- The Prospective Bidders may undertake due diligence of the PSU and hold discussions with the Advisors/the Government/the management of the PSU for any clarifications. .
- Concurrently, the task of valuation of the PSU will be undertaken in accordance with the standard national and international practices.
- Based on the response received from the Prospective Bidders, the Share Purchase and Shareholders Agreement will be finalized and vetted by the Legal Rememberancer and approved by the Government and then sent to the Prospective Bidders for inviting the final binding bids (Technical and> > Financial). After examination, analysis and evaluation, the recommendations of the Core Group will be placed before the CCD for a final decision regarding selection of the Strategic Partner, signing of the Share Purchase or Shareholders Agreements and other ancilliary issued.
- In case the disinvested PSUs shares are listed on SE, an open offer would be required to be made by the bidder before closing the transaction.