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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 in the third week of
October 2004 with preference to smaller applicants. 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 being a highly profitable company with a good
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 is a large IPP with a power generation capacity of 1600 MW. KAPCO was
privatised in 1996 and the government transferred management control to M/s
International Power plc along with 26 % shares. Subsequently, 10 % additional
shares were also divested to the new owners. 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 rectify the problems
recently faced by the general public during PPL IPO in the submission of
applications at Banks and receiving the shares or refund of their deposits.
Efforts should be geared up by identifying new entities for more IPOs to
transfer the benefits of privatisation to the common man, he said.
The Minister said that the workers interests must be safeguarded while
privatizing the Karachi Electric Supply Company (KESC) and their genuine
concerns should be addressed amicably through consultative process. He
instructed to hold a final pre-bid meeting of all the three potential
Consortiums of the three international parties including 1. Independent Power
Corporation (IPC), UK + ESKOM South Africa + IEL Integrated Energy Limited, UK
2. Kanooz Al Watan for Projects, Saudi Arabia + Siemens and 3. Hasan
Associates Ltd, Pakistan + Ranhill Berhad, Malaysia + ABB, Pakistan + GE
International Operation + Al-Bayarak Al-Baida Company, Kuwait in the third
week of the current month at Karachi. They have recently completed the initial
due diligence of the transaction and are in the process of final due diligence
and review of bidding documents. Dr. Abdul Hafeez Shaikh also gave the target
to hold the bidding of KESC by mid October 2004.
The meeting was informed that a final invitation has been given to the
qualified strategic investors, consortia of strategic/ financial investors
interested in acquiring 51 % interest in Jamshoro Power Company (JPC)
including management control to submit their Expression of Interest (EOI)
latest by November 30, 2004. Parties with relevant credentials submitting EOIs
will be dispatched a Request for Statement of Qualification (RSOQ) from
September 15, 2004. 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 located18 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 saleon as 'a going concern' basis with management control. It is expected
that bidding for CTI will be held in the next 4-6 weeks.
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, SSGC, SNGPL and NITL. Mr. Salim Gul Shaikh
Secretary Privatisation Commission, senior officials and the Consultants were
also present during the meeting.