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Mr. Muhammad Wasi Zafar Federal Minister for Privatisation & Investment has
directed the Privatisation Commission officials to expedite the privatisation
process of SME Bank, Jamshoro Power Company (JPC), Faisalabad Electric Supply
Company (FESCO), Heavy Electrical Complex (HEC), Motels and Restaurants of
Pakistan Tourism Development Corporation (PTDC) and other transactions, which
were at an advanced stage. He was chairing a meeting of PC officers and
consultants to review the status and progress of the privatisation process of
on going and upcoming transactions here today.
After having reviewed the current status of the privatisation process of SME
Bank, Mr. Wasi Zafar directed the concerned officials to finalize the
transaction structure at the earliest to bring the transaction to the market.
A Financial Advisory Services (FAS) agreement for the privatisation of SME
Bank had been signed between the Privatisation Commission and BMA Capital.
Mr. Wasi Zafar said that the government was determined to transfer the
benefits of privatisation to the maximum citizens of Pakistan under the
‘Privatisation for the People’ program, which has so far benefited 1.3 million
common citizens through appreciation in the value of the shares by 2.7 times
and the dividend received by them on the shares acquired by them under this
program in OGDCL, SSGC, PPL, KAPCO, NBP, UBL, HBL etc. He directed the PC
officials to line up more Initial Public Offerings (IPO)s and Secondary Public
Offerings (SPO)s of public sector entities with proper time line and
sequencing.
While reviewing the status and progress of Jamshoro Power Company (JPC), the
meeting was informed that the transaction was at a very advanced stage.
Currently five parties have been pre-qualified for transaction, which include
Al Abbas Power Generation Limited, China National Machinery & Equipment Import
& Export Corporation, Engro Chemical Pakistan Ltd, Metro Securities Limited
and United Bank Limited Consortium. PricewaterhouseCoopers are Financial
Advisor (FA) for the transaction. The transaction includes sale of 51% shares
along with management control to a qualified strategic investor. NEPRA
announced on July 3, 2007 a multi-year tariff for JPCL valid up to year 2014
Based on the tariff approved by NEPRA on July 3, 2007, FA is working on
valuation model and valuation of JPCL for approval by PC Board & CCOP prior to
bidding. As regard to Faisalabad Electric Supply Company Limited (FESCO) the
meeting was informed that this transaction was also at an advanced stage Four
parties have been pre-qualified for transaction, which include Rupali
Polyester Private Limited, National Power Generation and Supply Company
(Crescent Group), Fauji Foundation and United Bank Limited Consortium.
International Finance Corporation (IFC) is Financial Advisor (FA) for the
transaction. The transaction includes sale of 56% shares along with management
control to a qualified strategic investor. The successful investor will be
required to institute out of the 56% shares Employees Sales Option for 5%
shares acquired within a period of one year from the Closing Date. NEPRA
announced on 23 February 2007 multi years tariff for five years. The
Government has notified the tariff.
The meeting also reviewed the status and the progress of the privatisation
process of various other upcoming transactions.