Sell-off of HEC, SME Bank and PRCL: Ministries, FAs told to follow transaction timelines

ISLAMABAD: The Privatisation Commission’s Board Thursday discussed the matters related to the sale of remaining federal government properties, reference price approval of Heavy Electrical Complex (HEC) and other transactions including the SME Bank, divestment of government’s shares in the Pak Reinsurance Company Limited (PRCL).

Federal Minister for Privatisation Mohammed mian Soomro chaired the Privatisation Commission Board meeting Thursday.

Federal Secretary Privatisation, Board members, and senior officials of the ministry attended the meeting.

The recommendations of the privatisation board were also solicited for recommending a reference price for the HEC.

Representative from the Ministry of Industries and financial advisors were also present. The board considered reserve price computation under discounted cash flow (DCF), Market Multiple and Adjusted Net Asset Book Value (NAV) modes, allowed under Privatisation Commission (Valuation of Property) Rules, 2007.

PC board all set to approve reserve price of HEC

The Board recommended the discounted cash flow method and the same would be sent to the CCoP for decision(s).

The board was briefed about the hiring of financial advisors (FAs) for the sale of remaining 17 properties owned by the federal government.

The Board unanimously approved the hiring of the FAs.

Regarding the divestment of 20 percent shares of Pak Reinsurance Company Limited (PRCL), the Board was apprised that papers of Offer for Sale Document (OFSD) are being obtained from the management of the PRCL to approach the Securities and Exchange Commission of Pakistan (SECP) for seeking permission.

Once these actions are completed the opinion of the CCoP will be solicited for the determination of share price to proceed for divestment.

Federal Minister Mohammedmian Soomro stressed that the timeline for the ongoing transactions shall be strictly followed and issues emanating during the process shall be taken up with the relevant ministries/divisions on priority basis.

Copyright Business Recorder, 2021