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Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment has
directed the Privatisation Commission to make the Initial Public Offering
(IPO) of 20 % shares of Kot Addu Power Company (KAPCO) to the general public
through Karachi, Lahore and Islamabad Stock Exchanges soon after Ramadan with
preference to smaller applicants in line with the government's policy of
'Privatisation for the People'. He was chairing a meeting to review the
progress and the status of the privatisation process of various on going and
upcoming Public Sector entities. The issue being attractive for the investors
in line with earlier transactions like OGDCL, SSGC and PPL would also
receive overwhelming response, he hoped.
The Minister said that KAPCO, with strong fundamentals and sound operational
record, would increase market capitalization significantly and would bring a
worthwhile addition, rather a leader, to the power sector companies listed on
the Stock Exchanges. The large quantity of shares offered would also add to
the liquid share float in the market, he added.
KAPCO, with a power generation capacity of 1600 MW, was privatised in 1996
with the transfer of management control to M/s International Power plc. The
government realized proceeds worth Rs.9 billion through this divestment and
now holds 64 % of KAPCO's total 880 million issued shares.
Dr. Hafeez Shaikh directed the concerned officials to maintain the momentum of
such public offerings with proper sequencing and to ensure the early
completion of IPO's of United Bank Limited, State Life Insurance Company (SLIC)
and Pakistan Steel Mills shares. The government was determined to continue
with such public offerings to transfer the benefits of privatisation to the
common man and to make them partners in the ownership of Public Sector
Entities, he said.
The Minister said that the interest of the employees will be safeguarded while
privatizing Karachi Electric Supply Company (KESC) and their genuine concerns
will be addressed accordingly. All out efforts were also being ensured to
facilitate the prospective bidders for the transparent bidding of KESC, he
added.
The meeting was informed that in response to the final invitation to the
qualified strategic investors, consortia of strategic/ financial investors
interested in acquiring 51 % interest in Jamshoro Power Company (JPC)
including management control 11 Expression of Interest (EOI) have so far been
received while the last date to receive EOIs and the submission of SoQ is
November 30, 2004. Parties with relevant credentials submitting EOIs have been
dispatched Request for Statement of Qualification (RSOQ). Parties who have
already submitted EOIs and have been pre-qualified need not apply afresh.
Jamshoro Power Company Limited holds properties, rights, assets and
liabilities of two power stations, Jamshoro, an 880 MW gas and furnace
oil-fired power plant and Kotri, a 174 MW gas fired power plant. The assets
are strategically positioned in Pakistan Grid. The Jamshoro facilities are
located 18 km from Hyderabad and 165 km North East of Karachi while Kotri
facilities are located within the environment of Hyderabad.
The Minister also directed to expedite the privatisation of CTI. It may be
recalled that 53 % shares (approximately) held by Pakistan Telecommunication
Company Limited (PTCL) in Carrier Telephone Industries (CTI) have been offered
for sale on as 'a going concern' basis with management control. The parties
who had submitted their EOIs for CTI include (i) Saif Telecom Limited, (ii)
Consortium of Crescent Standard Business Management (Pvt.) Ltd., Simcon
International (Pvt.) Ltd., CTI Executive Association (regd.) & CTI Workers
Union, (iii). M/s Siemens, (iv) Aqeel Karim Dhedhi Securities (Pvt.) Ltd. and
(v) Northern Engineering Corporation. CTI's principal business is
manufacturing of transmission equipment for telecommunication services and
equipped with the state-of-art machinery, which include Digital Microwave
Radio, Mux for Optical Fiber, Rural Digital Branch Exchange, Single Channel
VHF Radio. CTI is located at Industrial Area Sector: I-9/2, Islamabad. The
meeting also reviewed the progress and the status of the privatisation process
of FESCO, OGDCL, PSO, PTCL, SNGPL, SSGC, Pakarab Fertilizers and IAL.