ISLAMABAD, June 11: The Cabinet Committee on Privatization (CCoP) on Wednesday approved privatization programme for the first quarter of the next fiscal which included divestment of 5-10 per cent shares of four major public sector units.
These units include National Bank of Pakistan (NBP), Sui Southern Gas Company (SSGC), Oil and Gas Development Company Limited (OGDCL) and Pakistan International Airlines (PIA)
The CCoP meeting, presided over by Finance Minister Shaukat Aziz, gave approval to the recommendations of PC Board to off-load public sector entities shares through the stock market in the first quarter of 2003-04.
The CCoP also directed the Privatization Commission to ensure public offering of already listed companies for broadening and deepening the stock market and extending the benefits of privatization to the common man.
The meeting was informed that OGDCL would be listed on the stock market and 2.5 per cent shares with green shoe option of another 2.5 per cent shares would be offered through initial public offering (IPO).
The green shoe options means that if the public response is higher than 2.5 per cent shares then the sale of shares could be enhanced to a total of 5 per cent shares instead of returning the money to the applicants.
Similarly, in case of NBP and SSGC, 5 per cent of their shares will be sold through public offering with a green shoe option of another 5 per cent. In case of PIA, 5 per cent shares will be divested.
The meeting expressed satisfaction over the pre-qualification of the three prospective bidders namely Saudi Oger Limited (SOL), Orascom Telecom (OTH) and Menara Telecom Consortium, for the due-diligence of Pakistan Telecommunication Company Limited (PTCL).
The CCoP reviewed the progress of the privatization process of various public sector entities and called for accelerating the pace of privatization.
The meeting was informed that all the three parties for PTCL had re-affirmed their interest in the transaction.
The committee directed the Ministry of Information Technology & Telecommunication to expedite the deregulation policy in order to accelerate the transaction for conclusion.
The Minister for Information Technology & Telecommunication informed CCoP that the telecom deregulation policy would be presented before the Federal Cabinet soon.
The committee also approved the inclusion of National Refinery Limited (NRL) in the privatisation programme by means of sale of up to 51 per cent of its shares to a strategic investor.
The sale of Kohinoor Oil Mills Limited shares without liabilities to the prospective bidders was also approved. The meeting also directed the Privatization Commission to proceed with the privatization of Faletti’s Hotel, Lahore with the condition that its cultural heritage is preserved and the buyer would run it as a quality hotel. The CCoP also approved privatization of Malam Jabba Resort with leasing as one of the options.