The government issued a notice in the gazette on Friday authorizing the divestment, and also authorized the director general of the AP Maritime Council to take further action on the divestment proposal. EGoS, made up of six senior IAS officials, was formed on June 4 “to implement the entire process of divestment and merger of GPL with APSEZ”.
EGoS submitted its report and recommendations to the state government in August, which has now been approved. The government has appointed a SEBI registered valuation advisor (KPMG), legal advisor (JSA Associates) and transaction advisor (Grant Thornton) to assist EGoS in the divestment process. In addition to these firms, SBICAPS was engaged as financial advisor and Shardul Amarchand Mangaldas as legal advisor.
EGoS said all of its advisers recommended the direct selling process because of the circumstances explained in their respective reports. EGoS also sought recommendations from Judge Dipak Misra and the PA’s Advocate General. Judge Misra justified the state government’s action to adopt a direct sale of its shares in GPL to APSEZ instead of an auction, and held that “this (direct sale) is due the fact that such a sale is neither discriminatory nor irrational but rather is based on definite hard data and is supported by research in the field ”.
In accordance with the recommendations of the valuation advisers, the enterprise value of GPL was established at 115 per share. The current price offered by APSEZ of 120 per share is higher than the value suggested by the valuation advisor. Therefore, the share price of 120 per share can be considered a fair price for the purposes of this transaction, ”the government said.
The government also established a special purpose company on May 25 to execute the sale and transfer of government shares in GPL.
While authorizing SPC to execute the sale, it asserted that there would be no dilution of the rights and privileges of GoAP and the obligations of the concessionaire as available / applicable under the terms of the existing concession agreement. , which is for a period of 30 years. . “The project is to be transferred to the government at the end of the concession period,” the government said, insisting that “the transfer of all port assets will be transferred back to the government, free of all charges and responsibilities, at the end of the concession period. concession period ”.