Divestment of reinsurance firm’s 20pc shares gets nod

Published November 26, 2021
In this file photo, Minister for Privatisation Mohammedmian Soomro chairs the Privatisation Commission Board meeting in Islamabad. — Govt of Pakistan Twitter
In this file photo, Minister for Privatisation Mohammedmian Soomro chairs the Privatisation Commission Board meeting in Islamabad. — Govt of Pakistan Twitter

ISLAMABAD: The Board of Privatisation Commission on Thursday approved the divestment of 20 per cent shares of Pak Reinsurance Company Ltd (PRCL).

The meeting also considered the sale of remaining 17 federal government properties and okayed the hiring of financial advisers.

Chaired by Minister for Privatisation Mohamm­admian Soomro, the PC board’s meeting was informed that papers of ‘Offer for Sale Document (OFSD)’ were being obtained from the management of PRCL to approach the Sec­urities and Exchange Comm­ission of Pakistan for further action.

Once these actions are completed, the opinion of the Cabinet Committee on Privatisation (CCoP) will be solicited for the determination of share price to proceed for divestment, the board was informed.

The reference price approval of Heavy Electrical Complex (HEC) also came under consideration at the board meeting. Recomm­endations of the PC Board were also solicited for recommending a reference price for HEC.

The board considered reserve price computation under discounted cash flow (DCF), Market Multiple and Adjusted Net Asset Book Value (NAV) modes, allowed under Privatisation Comm­ission (Valuation of Property) Rules 2007. The board recommended the Discounted Cash Flow method and the same would be sent to CCoP for taking the decision.

Mr Soomro stressed that the timeline for ongoing transactions should be strictly followed.

Published in Dawn, November 26th, 2021

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