ISLAMABAD, Dec 26: The government on Friday approved initial public offerings (IPOs) of two energy sector companies and fixed December 29 as the bidding date for the sale of at least 26 per cent shares of the Habib Bank Limited (HBL).
These decisions were taken by Cabinet Committee on Privatization, which was presided over by Finance Minister Shaukat Aziz.
The CCoP also approved a reserve price for the sale of a minimum 26 per cent shares of HBL (going up to 51 per cent of GOP shareholding) for acquiring the management control of the bank by the prospective bidder.
The meeting was informed that all the key issues relating to HBL transaction had been resolved and all the three pre-qualified bidders would take part in the bidding. These companies include Aga Khan Fund for Development (AKFD), Central Insurance Company Limited (CICL) and the State of Qatar Supreme Council for Economic Affairs and Investment.
The CCoP also gave go ahead to the Privatization Commission for the public offering through divestment of 10 per cent shares (67 million including five per cent green shoe option) in Sui Southern Gas Company Limited (SSGCL).
The meeting also approved initial public offering (IPO) of government’s 10 per cent (69 million including five per cent green shoe option) shares in Pakistan Petroleum Limited (PPL). The government has 93.4 per cent shares in PPL while remaining 6.6 per cent shares are jointly held by the International Finance Corporation (IFC) and others.
Informed sources said the CCoP also approved the offer of the second highest bidder Haji Saifullah Group for the sale of 71,797,050 shares of Thatta Cement Company Limited (TCCL) at the rate of Rs10.75 per share.
The sources said the highest bidder, Star Cotton Corporation, which had offered Rs10.85 per share price for TCCL was reluctant to make payments as per the approved schedule and hence the second highest bid was approved.
The Star Cotton Corporation, said the sources, had objection to the overall sale price, which had come to around Rs1.19 billion including liabilities to be paid to the employees of the company.
As a break up, total price of 90 per cent shares of TCCL at the rate of Rs10.85 (offered by Star Corporation) was Rs778.997 million. The group was required to purchase remaining 10 per cent shares allocated for the employees of the TCCL as well at Rs86.5 million.
The Star Corporation was also required to pay Rs77.1 million as GHS/VSS to the employees of the TCCL and repay a Rs247.6 million to State Cement Corporation of Pakistan (SCCP) which TCCL had borrowed. As such, the total bid price for complete take over of TCCL reached Rs1.19 billion for the Star Corporation.
Earlier, the Privatization Commission Board meeting presided over by investment and privatization minister Dr Hafeez Shaikh decided that it would be mandatory for the prospective bidders for Falettis’ Hotel to preserve the cultural, historical and aesthetic value of the hotel.
The new buyer would preserve the two rooms, which had remained under the use of Quaid-e-Azam Muhammad Ali Jinnah and Justice A.R. Cornelius, as cultural heritage.
The meeting also gave go-ahead for National Refinery Limited (NRL) privatization through a Financial Adviser.