News Column

Finance Minister chairs Cabinet Committee on Privatization meeting - Press Note issued by Privatisation Commission

June 13, 2014



Following is the text of press note issued by Privatisation Commission

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Finance Minister Senator Ishaq Dar chaired a meeting of the Cabinet Committee on Privatization (CCoP), today, at the Finance Ministry to consider the offer for divestment of GOP residual shares in UBL.

The CCOP approved divestment of 19.8 % of GOP shares today. Book building for divestment of government shares concluded yesterday at 9 pmPakistan time. With the divestment of UBL shares Pakistan has re-entered the world equity market after almost 8 years.

The meeting was informed that there was an unprecedented interest from both the domestic as well as foreign buyers and the UBL deal was oversubscribed by almost 2 times. More than 40 of the World's leading equity funds including Templeton, Wellington, Everest, Lazard, Morgan Stanley, Blackrock, etc participated in the UBL share transaction.

The total demand received from the domestic investors was Rs 12.3 billion, which is one of the highest in terms of domestic demand in Pakistan's Capital Market history. It was further informed that the transaction will raise equivalent of USD 387 million out of which 310 million will be foreign exchange component while the remaining amount is the rupee component. 90% of the proceeds will be used for debt retirement and 10% for poverty reduction.

CCoP was also informed that 31 PSEs were approved for fast-track privatization by the previous government. The present government is following the same list. UBL, PPL, OGDCL are the first to be privatized. The UBL deal is the first success story which will be followed by PPL and OGDCL soon.

The Finance Minister on his own and on CCoP behalf appreciated the hard work done by the PC and complimented the Lead Managers and Book Runners for completing the deal in a professional manner. He said that with this successful deal the international and domestic investors' confidence in the economic policies of the government will enhance. He added that while putting in place credible plans, due process should not be compromised.

The meeting was also attended by Minister for Information, Broadcasting and National Heritage, Senator Pervaiz Rashid, Minister for Planning and Development, Ahsan Iqbal, Minister for Commerce, Khurram Dastagir Khan, Minister for Petroleum and Natural Resource Shahid Khaqan Abbasi, Minister for Textile Industry, Abbas Khan Afridi, Minister for ports and shipping, Kamran Michael and secretaries of various federal ministries.

For more information, contact:

Privatisation Commission

5-A EAC Building Constitution Avenue,

Islamabad- Pakistan

Tel: +9251 920 5146 -47

Fax: +9251 920 3076

Email: info@privatisation.gov.pk

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Source: Pakistan Press International