KARACHI: The Pakistan Stock Exchange (PSX) received Rs8.96 billion ($85 million) from a Chinese consortium as sale proceeds of 40 per cent strategic equity stake in the bourse, stockbrokers were informed at a meeting held on Friday.

A notice of the meeting issued in the morning stated that it would “discuss the critical matters in relation to divestment of 40pc equity stake to the Chinese consortium”, which ensured much larger participation.

Shahzad Chamdia, chairman of the stock market’s divestment committee, told Dawn after the meeting that the amount was received in the Escrow account at the State Bank of Pakistan and transferred to the PSX’s designated account on Friday afternoon.

The buyers will be delivered 320 million (40pc) shares of the PSX through placement in their Central Depository Company account. The receipt of purchase consideration has brought to a successful close a transaction for which the sale and purchase agreement was signed on Jan 21 in the presence of Finance Minister Ishaq Dar and Chinese Ambassador to Pakistan Sun Weidong.

Most of the 200 PSX stockbrokers who attended the meeting came out of the hall grinning from ear to ear as each broker would receive Rs40m as his share of the proceeds received.

“The amount would be distributed among the original owners of the exchange termed ‘shareholder brokers’ this coming week,” Mr Chamdia said.

The Chinese consortium had won the stake in December last year by placing the highest bid of Rs28 per share for 320 million shares at a total price consideration of Rs8.96bn.

The consortium comprises Chinese Financial Futures Exchange Company Ltd (lead bidders), Shanghai Stock Exchange, Shenzhen Stock Exchange and two local partners Pak-China Investment Company and Habib Bank Ltd.

With 40pc shares of the PSX already distributed among the brokers and another 40pc sold to the Chinese consortium, the remaining 20pc stock is to be offered through an initial public offering (IPO). Although no date for the IPO has been specified, Mr Chamdia said the entire divestment transaction was targeted to be completed by end-June.

Published in Dawn, March 4th, 2017