|
|
|
|
|
The Cabinet Committee on Privatisation (CCOP) which met here today under
the chairmanship of Prime Minister Syed Yousuf Raza Gilani gave go ahead for
initiating the process for the privatisation of 37% shares of Oil & Gas
Development Company Limited's (OGDCL) Qadirpur Gas field with transfer of
operational control. The CCOP also allowed the bidding of Heavy Electrical
Complex (HEC) and Small & Medium Enterprises (SME) Bank.
The Prime Minister directed the Ministry of Privatisation and the
Privatisation Commission to ensure that concerns of all should be addressed
before the privatisation of Oil & Gas Development Company Limited's (OGDCL)
Qadirpur Gas field and that all stakeholders should be taken on board.
The Prime Minister instructed that quality players should be brought in for
increasing the drilling activity and accelerating the exploration activity for
increasing the production at Qadirpur Gas field.
The Prime Minister further directed the Ministry of Privatisation and the
Privatisation Commission to exercise utmost transparency at all levels while
executing the transactions and efforts should be made to get maximum proceeds
from the process. Level playing field should be provided to all potential
investors and quality players should be associated in the process for
improving the efficiency, bringing in fresh investment and modern technology
to ensure expansion in the transactions after their privatisation for creating
new job opportunities, ensure jobs of existing employees and enhancing the
production. The employees should not be disturbed, he emphasised.
The agreed severance package with SME Bank employees and valuation of SME Bank
was also approved by the CCOP. The Salient Features of the transaction include
divestment of 93.88% GOP shareholding along with transfer of management
control. The SME Bank has an unrestricted commercial banking license. The
potential buyer will have to retain the name 'SME Bank Ltd.' for one-year post
privatisation. The charter of SME Bank to be maintained for at least three
years post privatisation. GOP will keep the right to appoint at least one
director on the board of directors of SME Bank post privatisation.
The CCOP also approved the valuation of Heavy Electrical Complex (HEC) and
directed the PC to proceed ahead with its bidding process. The PC will convey
the terms and conditions relating to privatisation of HEC to all the bidders.
Information Memorandum, Bid Documents and Time Frame for bidding date will be
provided to those Pre-qualified parties only who will deposit earnest money to
become eligible for participating in the bidding.
The Purchaser shall continue to operate company's manufacturing facility and
shall not in any way abandon, cease to operate or otherwise shutdown the
existing Company manufacturing facility. The cost of Golden Hand Shake Scheme
(GHS) for permanent workers and Voluntary Separation Scheme (VSS) for the
executives will be shared equally between the new buyer and the Privatisation
Commission. The bidder shall bid on the basis of audited accounts of June 2006
and may also factor the latest un-audited accounts available prior to the
bidding.