PC approves divestment of shares in three banks

PC approves divestment of shares in three banks

ISLAMABAD: The board of Privatisation Commission (PC) Thursday approved divestment of shares in three banks namely Habib Bank Limited, United Bank Limited, Allied Bank Limited and two oil and gas sector companies, Oil and Gas Development Companies Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
Second session of the Board of Privatisation Commission was held Thursday under the chairmanship of Mohammad Zubair, chairman Privatization Commission. The board members including Arsala Khan Hoti, Nasiruddin Ahmad, Zafar Iqbal Sobani and Secretary Privatisation Commission attended the meeting. 
Mohammad Zubair informed the board that the government would ensure transparency in the process of privatisation. 
All stakeholders would be taken into confidence. The chairman also highlighted that government is sensitive to the employees and their rights would be protected.
The board considered and approved divestment of shares in Habib Bank Limited, United Bank Limited, Allied Bank Limited, Oil and Gas Development Companies Limited and Pakistan Petroleum Limited.
The board also allowed the commission to initiate process for hiring of financial advisors for the above-mentioned entities and constituted transactions committees (TCs). 
According to the government roadmap for the privatisation, the government is already working on reforming or privatising public sector enterprises (PSE), focusing on limiting poor performance and improving public sector resource allocation. 
The Cabinet Committee on Privatization (CCoP) has already approved a list of 31 PSEs for action, and we have developed a plan to sequence the capital market and pre-privatisation restructuring for these firms.
Capital Market Transactions Roadmap: the government has identified eleven companies, which are listed in the TMU, in the oil and gas, banking and insurance, and power sectors for block sales, and primary or secondary public offerings. It have hired one financial advisor and will hire two more by end-March 2014 (new structural benchmark) to offer minority shares in three companies in domestic or international markets by end-June 2014 subject to investor interest and global market conditions.
Furthermore, it has plans to hire financial advisors for at least two other companies by end-June 2014 to market minority shares within six months thereafter.
Strategic Private Sector Participation: The government believes that strategic partnerships will act as a catalyst in unlocking the potential of PSEs through their managerial and investment participation. They can also increase the value of government’s residual shareholding. The government has identified seventeen companies, which are listed in the TMU. For profitable PSEs, we will make efforts to balance the objectives of sale proceeds while adequately addressing labour market issues and social implications. Financial advisor for National Power Construction Co. (NPCC) hiring have been completed and has plans to finalise the sale by end-June 2014.
The government has also plans to hire financial advisors for one electricity distribution company and one power generation company, and will hire financial advisors for the sale of PIA Investment Limited’s non-strategic assets in New York and Paris by end-March 2014, a new structural benchmark agreed with International Monetary Fund. 
The government has plans to initiate Islamabad convention center’s sale after finalising PIA Investment Limited.
Restructuring: In parallel government intends to continue it’s restructuring plans and hire professional chief executives and board members for those enterprises with a corporate structure in line with the corporate governance rules. The government is developing medium-term action plans to restructure Pakistan International Airlines (PIA), Pakistan Steel Mill (PSM) and Pakistan Railways (PR).

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