ISLAMABAD: The Cabinet Committee on Privatisation (CCOP) on Wednesday has given a go-ahead to the transaction structure for the divestment of the government’s residual shares in the ABL (Ltd) as recommended by the Privatisation Commission. Privatisation Commission (PC) Chairman Mohammad Zubair briefed the meeting, chaired by Finance Minister Ishaq Dar through video link from London, about the key features of the transaction structure. He informed the meeting that the PC board earlier in its meeting on Wednesday morning reviewed and approved the transaction structure proposed by lead managers and book runners before its submission to the CCOP.
Sources said the government’s total holding in ABL is 10 percent, which would be offered to the prospective investors to mobilise initially projected Rs 9.87 billion based at Rs 85 per share price on March 19, 2014. Now the price of each ABL share has increased to Rs 112 and the government expects to receive relatively high proceeds.
The meeting was informed that transaction structure envisages offering the entire government shares to both international and domestic institutional investors, high net worth individuals and general public through the Karachi Stock Exchange (KSE) book building system. The offering of the government shares will be via an Officer for Sale Document (OFSD) in compliance with the applicable regulations of the domestic stock exchange(s) and the Securities and Exchange Commission of Pakistan (SECP).
As per key features of the recommended structure, the strike price shall be determined via the Dutch Auction Method as envisaged in KSE book building system and the floor price, as approved by the CCOP and the PC board, will be notified prior to the book-building exercise planned for December 11-12, 2014.
The CCOP after detailed deliberations accorded approval to the proposed structure as recommended by the Privatization Commission.
Ministers for Planning and Development, Ahsan Iqbal, Information and Broadcasting, Pervaiz Rashid, Commerce and Trade, Khurram Dastgir, Petroleum and Natural Resources, Shahid Khaqan Abbasi, and other senior officials attended the meeting.
