Advisory Services for disinvestment of state PSU in Orissa

 The Government of Orissa (GoO) intends to divest its entire holding in Hirakud Industrial Works Limited (HIWL) held through Industrial Development Corporation of Orissa Limited (IDCOL), the holding company. HIWL is in the business of fabrication and erection of transmission line towers (TLT) used for transmission and distribution of power along with manufacture of aluminium conductors and has its manufacturing facility located at Hirakud, in the district of Sambalpur Orissa. Adam Smith Institute is the Advisor to Government of Orissa on Public Enterprises Reforms Programme being taken up by the state.

 The GoO desires to appoint an Advisor to assist IDCOL in locating a suitable buyer for this company who would ensure continuation of business from the same location. The assistance sought from the Advisory firm includes inter alia, but not necessarily limited, the following;

 Ø     Valuation of the company;

Ø     Structuring the transaction

Ø     Preparation of Information Memorandum & other bid documents;

Ø     Drafting the legal documents like Share Purchase Agreements & Shareholders’ Agreement;

Ø     Marketing the transaction;

Ø     Drawing up the evaluation criteria;

Ø     Assist in negotiations;

The above-mentioned list is not exhaustive and it is expected that the Advisor must advise and undertake any other activity necessary for concluding the disinvestment process. However, the responsibility of advertisement lies with IDCOL.

GoO through IDCOL intends to hire such Advisory firms that have successfully managed disinvestment activities on behalf of Union government and other state governments. Besides it would be helpful if the firms have some exposure to ancillary segment of power sector either through financing or corporate restructuring.

The fess for the assignment will be strictly on ‘success fee’ basis with provision for a ‘drop dead’ fee in the event the transaction is called off at any stage and the fees will be borne by IDCOL.

 The Advisors are requested to submit separately the Technical Proposals and Financial Proposals in sealed envelopes super scribed “Technical Proposal for Advisory Services in respect of Disinvestment of HIWL” & “Financial Proposal for Advisory Services in respect of Disinvestment of HIWL” so as to reach to the address below by 17.00 PM on 30^th November 2002 to the address below:

 Resident Advisor

Adam Smith Institute, 1295, Forest Park, Bhubaneswar-751 009.

Proposals in electronic form or through fax will not be entertained and the Advisors must ensure that the proposals reach within the time and date mentioned above.

For further information on HIWL, the Advisors are requested to contact the ‘Company Secretary’ of IDCOL at following address;

Mr. Arvind Acharya

Head (Legal & Secretarial)

IDCOL

Sardar Patel Bhawan

Unit-II

Bhubaneswar- 751 009