The Privatisation Commission (PC) has invited Expression of Interest (EoI) for issuance of Oil & Gas Development Company Limited (OGDCL)'s exchangeable bonds by magnetising up to 10 percent of government's shareholding (up to 430,000,000 shares) in OGDCL (Transactions).
The potential parties have been asked to send their EoIs by April 12, 2011 containing a statement of technical qualification comprising experience of equity linked underwriting strength, distribution capabilities, presence and commitment to Pakistan, knowledge of the Oil & Gas Industry and OGDCL, advisory to emerging market entities for international listings, and competence and commitment of the team.
According to PC, the EoIs are invited from Financial Advisory Consortium (FAC) for the issuance of the bonds. The transaction will be jointly led by at least 2 international book runners who have recognised equity linked sales, distribution, and underwriting capabilities and demonstrable track record of successfully managing such issuances. The FAC will preferably include a local financial institution as part of the consortium.
The interested parties have been asked to demonstrate post issuance backup capabilities and provide after listing performance of the recent equity linked instruments successfully listed by them. The parties have been advised to submit EoIs as soon as possible, but not later than three weeks from the issuance of EoI. The Request For Proposal (RFP) package, inviting Technical and Financial proposals would be dispatched or e-mailed to the shortlisted parties as and when EoIs are received.
The last date for the submission of the technical and financial proposals will be intimated later. It is not intended to be, and should not be construed as any representation or warranty, express or implied, with respect to any statement made herein and should not be construed as an offer.
It is expected that Financial Advisory Consortium (FAC) will include indicative recommendations for FAC's International Legal Counsel, Pakistan Legal Counsel, and Accountants. However, all final third party appointments will be made in consultation with PC.
OGDCL is the largest petroleum exploration, production and development company, which is listed on all the three Stock Exchanges in Pakistan as well as on London Stock Exchange.
Government divested 4.98 percent of OGDCL shares via an Initial Public Offering (IPO) in 2003, followed by Secondary Offering (SO) of 9.5 percent shares in the form of Global Depository Receipts ("GDRs") at London Stock Exchange and simultaneous Secondary Public Offering (SPO) of 0.5 percent to the general public in 2006.
Government further divested its OGDCL shares via the Benazir Employee Stock Option Scheme (BESOS) where unit certificates equivalent to (10.2 percent shares) were distributed among the company employees free of cost for empowerment of the workers. Presently, government holds 74.82 percent of OGDCL shares and plans to monazite up to 10 percent of the OGDCL shares by means of an issuance of Exchangeable Bond to international institutional investors ("Transaction"), jointly administered by the PC and the Finance Division.
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