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The Cabinet Committee on Privatisation (CCOP) approved the highest bid of
US $ 1.96 per share (equivalent to Pak Rs.117.01 per share) offered by
Etisalat (UAE) for 26% strategic stake of PTCL. This translates into US $
2,598,960,000 (Pak Rs.155,157,912,000). Implied market capitalization of PTCL
based on the above bid would be Pak Rs.596,761,200,000. The CCOP met under
the chairmanship of the Prime Minister Mr. Shaukat Aziz here today.
The CCOP felt that the price offered by Etisalat was in line with government's
expectation and reflects the value of PTCL. It also felt that this
partnership would create new value for the PTCL and Etisalat and further
strengthen the existing strong bonds of friendship between Pakistan and the
United Arab Emirates.
Earlier on Saturday, the 18th June, 2005, bidding for the sale of 26% shares
of PTCL was held under the chairmanship of Dr. Abdul Hafeez Shaikh Federal
Minister for Privatisation & Investment who was accompanied by Mr. Owais Ahmed
Khan Leghari Minister for I. T & Telecom and Sheikh Rashid Ahmed Minister for
Information & Broadcasting. Three parties, namely China Mobile, Etisalat and
Sing Tel participated. China Mobile offered bid of Pak Rs.63.48 per share
(total Rs.84,173,167,260) and Sing Tel Pak Rs.52.54 per share (Pak
Rs.69,662,736,000).
The CCOP noted that the PTCL transaction is a land mark for the privatisation
process in Pakistan as three world class players participated in it. The
participation of these players reflects the confidence in the overall policies
of the Government with particular reference to de-regulation policy and
investment opportunities in Pakistan. This also shows confidence in the
privatisation process. The meeting further noted that the 62% shares of PTCL
would remain with the Government. The private sector management will increase
efficiency in the company, which in turn, increase the value of GOP's 62%
shareholding.
The CCOP also issued directions to the Privatisation Commission that all the
applicants who have applied for allotment of shares in response to
subscription for UBL IPO be allotted shares immediately.
The CCOP appreciated the efforts made by Ministries of Information Technology
and Telecom, Privatisation & Investment, Privatisation Commission and all
others involved directly or indirectly in this transaction.
The Minister for Information Technology, Minister for Privatisation &
Investment, Minister for Labour & Manpower, Minister for Petroleum & Natural
Resources and other high officials of respective
Ministries/Divisions/Departments attended the meeting.