PC BOARD CONSTITUTES TRANSACTION COMMITTEE FOR SECONDARY PUBLIC OFFERING OF PPL, NPCC & HEC STRUCTURE REVISED
 

Islamabad, July 21, 2011

A meeting of the Board of Privatisation Commission (PC) was held under the chairmanship of Mr. Ghous Bux Khan Mahar Federal Minister for Privatisation here today. Also attended by Rana Asif Tauseef, Minister of State for Privatisation. The Board constituted a six member Transaction Committee headed by a senior PC board member Mr. Iftikhar ul Haq with Mr. Mahmood Nawaz Shah, Mr. Farid Malik PC Board members, the Federal Secretaries Petroleum & Natural Resources, Privatisation, Finance, Chairman SECP and MD PPL as its members Secondary Public Offering (SPO) of Pakistan Petroleum Limited (PPL).

Mr. Ghous Bux khan Mahar Federal Minister for Privatisation directed the PC officials to undertake the Privatisation Program on the active agenda expeditiously while strictly observing utmost transparency, prevailing rules and providing level playing field to both local and foreign investors in an open manner. Addressing the PC Board Rana Asif Tauseef Minister of State for Privatisation directed that milestones for each transaction must be fixed before initiating any transaction and fee structure for advisory services should be made mandatory on the basis of achieving the milestones.

The PC board was informed that Expression of Interest (EoIs) from three consortia for appointment as Lead Manager / Book Runner(s) for SPO of the Pakistan Petroleum Limited had been received, which include 1. NIB Bank Limited, Global Securities Pakistan Limited, United Bank Limited, BMA Capital Management Limited, 2. Allied Bank Limited, KASB Bank Limited, KASB Securities Limited, AKD Securities Limited and 3. National Bank of Pakistan, Habib Bank Limited, Arif Habib Limited, Foundation Securities Limited.

Privatisation Commission had invited EoIs for the appointment of Lead Manager/Book Runner(s) for the offering of approximately 2.5% government of Pakistan (‘GOP’) owned shares of Pakistan Petroleum Limited (‘PPL’) to the general public through the domestic stock exchange(s). In order to ensure full transparency of the process an Evaluation Committee will evaluate the proposals submitted by the Interested Parties and will submit its report on Technical pre-qualification of Interested Parties before Privatisation Commission Board. The transaction will strengthen the domestic capital market and mobilize savings of individuals, households and institutions of Pakistan and allow them to take ownership

The PC Board approved the recommendations of FAS for Transaction Structure of National Power Construction Corporation (NPCC) and allowed to proceed with a strategic sale of 88 % GoP shares of NPCC on, ‘as is where is’ basis after approval of the CCOP while allocation of 12 % remaining shares for employees for distribution of Unit Certificates under Benazir Employees Stock Option Scheme (BESOS). KASB Bank is providing Financial Advisory Services for the transaction.

While finalizing the Transaction Structure for Heavy Electrical Complex (HEC), the PC Board agreed with the recommendations of the Transaction Committee for revising the transaction structure as “divestment of equity stake at minimum 96 % of the issued, subscribed and paid up share capital in HEC together with management control”. PC has so far received three EOIs for HEC from 1. Niagra Mills (Pvt) Ltd, Pakistan, 2. AREVA T & D Pakistan (Pvt) Limited, France and 3. ALSTOM Grid Pakistan (Pvt) Ltd, France. The Board recommendations will be submitted to the CCOP for a decision. The PC board also adopted audited accounts of the Privatisation Commission for the year ended June 30, 2010.

Earlier, the PCB reviewed the implementation status and progress of various other ongoing and upcoming transactions. The PC Board members, senior officials of the respective Ministries, departments, representatives of the respective entities and officials Privatisation Commission attended the meeting.