ISLAMABAD - The Cabinet Committee on Privatisation (CCoP) on Tuesday approved the book building process for government’s residual shares in United Bank Limited (UBL) transaction which is scheduled to complete today (Wednesday).
Finance Minister Senator Ishaq Dar chaired a meeting of the Cabinet Committee on Privatisation (CCoP), on Tuesday, at the Finance Ministry to consider divestment of GOP residual shares in UBL and transaction structure of Pakistan Petroleum Limited (PPL).
The CCoP approved the book building process for GOP residual shares in UBL transaction, which is scheduled to start at 8 am PST tomorrow and will conclude at 9:00 pm PST on the same day. The ‘Strike Price’ i.e. price of UBL share determined/ discovered on the basis of Book Building and at which price UBL share will be offered to successful bidders will be determined at the end of the Book Building period after the Lead Managers and Book Runners have aggregated all the bids and discussed the book with the selling shareholder i.e. GOP.
The CCoP also considered the PPL transaction. Minister of State for Privatisation, Muhammad Zubair, in a detailed briefing, explained that the transaction structure of Pakistan Petroleum Limited (PPL) envisages offering 70 million shares to both international and domestic institutional investors and High Net Worth individuals (HNWI) through a Book Building process to be executed in the last week of June, 2014.
Final allotment of shares out of the Book Building Offer shall be made after receipt of full subscription money from the successful bidders. However, shares to such bidders shall be issued/ transferred within 7 working days, after receipt of full subscription money.
The transaction marketing road shows are scheduled to be held in Karachi, Lahore, Islamabad, Sialkot, Faisalabad and Multan between June 18, 2014 to June 24, 2014. Privatisation Commission will seek requisite approvals from Stock Exchanges and Securities & Exchange Commission of Pakistan relating to the transaction structure, allotment mechanism and any other approvals required for the transaction.
The CCoP approved the transaction structure of PPL with the directions of the Finance Minister that within next three months of this transaction, 7 million shares for general public with preference to existing employees of PPL should be offered. The meeting was attended by Minister for Commerce, Khurram Dastagir Khan, Minister for Information, Broadcasting and National Heritage, Senator Pervaz Rasheed, Minister for Petroleum & Natural Resource Shahid Khaqan Abbasi, Minister for Textile Industry, Abbas Khan Afridi and Federal Secretaries of various ministries.