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Securities and Exchange Commission of Pakistan express contentment over state of preparedness for divestment of shares of Lahore Stock Exchange -...

August 25, 2014



Securities and Exchange Commission of Pakistan express contentment over state of preparedness for divestment of shares of Lahore Stock Exchange - Press Release issued by Lahore Stock Exchange

Following is the text of press release issued by Lahore Stock Exchange (LSE)

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The apex regulator of capital market of Pakistan has shown complete satisfaction over the concrete efforts being made by the Demutualization Committee of LSE to attract the foreign Strategic Investors as well as local and foreign Financial Institutions for the sale of shares of Lahore Stock Exchange Ltd. as per requirement of the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012.

This message was relayed when a very high level delegation of the Securities and Exchange Commission of Pakistan, comprising of Mr. Tahir Mahmood, Chairman, Mr. Zafar Abdullah, Commissioner (SM), Mr. Imran Iqbal Panjwani, Executive Director and Mr. Imran Inayat Butt, Director, held separate meetings with the Demutualization Committee and the Board of Directors of LSE at Lahore.

These meetings are being considered very crucial as SECP is mulling over to give directive under Section 12 of the Act for the divestment of shares, as the date of 2nd anniversary of demutualization of LSE is approaching on August 26, 2014.

During the meeting with the Demutualization Committee, Dr. Yasir Mahmood, Convener, apprised the Commission about various milestones achieved by the Exchange so far for the purpose of divestment of shares which include, appointment of NBP and UBL - Consortium to act as Joint Financial Advisor for the transaction, preparation of comprehensive Information Memorandum, Marketing Plan and establishment of Data Room for the due-diligence by the Strategic Investors.

The Financial Advisor of the Exchange also presented its progress report of outreach efforts and briefed about the initial communication with the potential Strategic Investors that meet the criteria prescribed under the Demutualization Regulations. The Commission was informed that some leading local and foreign Institutional Investors have already shown positive interest in the purchase of shares of LSE.

Mr. Aftab Ahmad Ch., Managing Director/CEO LSE, presented the progress of different initiatives for the promotion of business of LSE as well as and for the education and protection of the small investors. The members of the Committee also presented various viable proposals for enhancing liquidity in the secondary market.

The Commission assured that all the proposals will be considered for implementation in the forthcoming Coordination Committee meeting of three Exchanges and SECP. The Commission while appreciating the endeavors of the Demutualization Committee assured to provide full regulatory support to LSE in order to achieve this important milestone of national interest.

The Commission was confident that after acquisition of shares by the foreign Strategic Investors, LSE will get international exposure and shall be benefited from the technological and managerial capabilities of the acquirer.

It may be mentioned that the move towards corporatization and demutualization of LSE started two years ago after promulgation of the Demutualization Act and is considered as the beginning of new era for capital markets in Pakistan.

The Act allows sale of up to 40% shares of LSE to the strategic international investor(s) such as global stock exchanges, central depository, clearing company and/or financial institutions, 20% offer of shares to the general public through IPO for the purpose of listing at the Stock Exchanges besides retention of 40% shares by the initial shareholders who were the members of the Exchange.

Demutualization of LSE will lead to improve governance structure, transparency, assist in attracting international strategic partners and good quality issuers. During the meeting of the regulators with the Board of Directors of LSE on the same day, the implementation of the Plan for Segregation of Commercial and Regulatory Functions of LSE after demutualization was reviewed by the Commission.

The Commissioner (SM) applauded the achievements of LSE in providing Investor education to the general public and in promoting Investor Relations in listed companies. The Demutualization Committee and the Board of Directors of LSE also thanked the Chairman and the Commissioner (SM) for their continued support in demutualization process.

For more information, contact:

Barkat Ali Anjum

Deputy Manager-Media and Public Relations Department

Lahore Stock Exchange (LSE)

Lahore Stock Exchange Building,

19, Khayaban-e-Aiwan-e-Iqbal, P. O. Box: 1315,

Lahore - 54000, Pakistan

Tel: +92-42-36368000

Fax: +92-42-36368484-85

Email: barkatali@lse.com.pk

Website: www.lse.com.pk

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Source: Pakistan Press International


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