ISLAMABAD: The Privatisation Commission have finalized arrangements to divest 10 percent shares of Allied Bank Ltd (ABL) to generate around Rs13 billion.
The govt wants to sell the 10 percent remaining shares in ABL to generate around Rs13 billion through notifying floor price of ABL shares to Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.
According to reports, the book building process will take place on December 10 and 11. It is to be noted that the Cabinet Committee on Privatisation (CCoP) approved the Transaction Structure for the Divestment of GoP residual shares in the ABL (Ltd) on November 26.
In 1991, the first government of PML-N sold 51pc shares of ABL at Rs971.6 million. The government is offering 131,275,073 Ordinary Shares representing 11.5pc of Total Paid Up Share Capital of Allied Bank Limited at a Floor Price shall be at a premium to the par value of PKR 10.
The government after completing two successful transactions of UBL and Pakistan Petroleum Limited (PPL) had faced a jolt when it scrap the Oil and Gas Development Company Limited (OGDCL) deal due to the cold response from international investors. Therefore, the ABL’s transaction will be a test for the government to revive confidence of foreign investors.
Later, after completing ABL transaction, the government would divest its shares in Habib Bank Limited (HBL). The government is expecting to generate $1.2 billion from the sale of HBL shares through global depository receipts. Currently, the government has 42.5 percent shares in HBL, which would be divested before March 2015 as per government’s plan.
It is to be recalled that from 2003 to 2007, the Musharraf government sold 58.5pc percent shares of HBL at Rs34.6 billion in two transactions.
