CCOP ALLOWS INCLUSION OF KAPCO IPO IN PRIVATISATION PROGRAM & SALE OF TIP-CTI

Islamabad, April 2, 2004

The Cabinet Committee on Privatisation which met here today under the chairmanship of Mr. Shaukat Aziz, Federal Minister for Finance approved the inclusion of Initial Public Offering (IPO) of GOP's shareholding in Kot Addu Power Company in the Privatisation Program.

CCOP allowed the Privatisation Commission to hold the bidding for the sale of Faletti's Hotel Lahore for building a quality hotel of international repute within reasonable timeframe while ensuring that the new design of the Hotel was in harmony with the existing architecture and preservation of its historic identity.

Mr. Shaukat Aziz and the Cabinet Committee noted with appreciation the success and commended the results of the secondary Public Offering of Sui Southern Gas Company shares, which had set new record as regard to the over subscription.

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment while briefing the CCOP on the Public Offering of 5 % shares of Sui Southern Gas Company (SSGC) said that the response from the applicants for 1000 shares remained all time high to the tune of 258089 applications worth Rs. 13 billion, which was 15 time oversubscribed after the OGDCL IPO and it has also confirmed the peoples' confidence reposed in the economic policies of the Government. After exercising the Green Shoe option for another 5% shares to accommodate maximum smaller applicants, the government had realized an amount of Rs. 1.74 billion for total 10 % shares, he said.

The balloting for SSGC shares to determine the successful applicants was held among the applicants of 1000 shares declaring 67117 applicants successful. Keeping in view the ever-highest number of applicants for 1,000 shares, balloting was restricted to only this category of applicants with a focused approach of the Government to pass on the benefits of privatisation to the general public, especially the small investors, and to broaden, strengthen and deepen the base of the Stock Market, he added.

The meeting also gave go ahead for the privatisation of Telephone Industries of Pakistan (TIP), Haripur and Career Telephone Industries (CTI), Islamabad.

The Federal Ministers Dr. Abdul Hafeez Shaikh, Mr. Owais Ahmed Khan Leghari, Chairman BOI, Deputy Chief Planning Commission, the Federal Secretaries of the respective Ministries, senior officials of Finance Division, Privatisation Commission, Board of Investment and Securities Exchange Commission of Pakistan attended the meeting.