Body formed to hold Secondary Public Offering of PPL

Privatisation Commission has constituted a six-member Transaction Committee on Thursday to hold the Secondary Public Offering (SPO) of Pakistan Petroleum Limited (PPL). The committee will be headed by a senior PC board member Iftikhar ul Haq with Mahmood Nawaz Shah, Farid Malik, the Federal Secretaries Petroleum and Natural Resources, Privatisation, Finance, Chairman SECP and MD PPL as its members.
The PC Board which met on Thursday was informed that the PC has received Expression of Interest (EOI) from three consortia for appointment as Lead Manager/ Book Runner(s) for Secondary Public Offering (SPO). Ghous Bux Khan Mahar Federal Minister for Privatisation chaired the meeting attended by Rana Asif Tauseef, Minister of State for Privatisation with others.
The consortia include 1. NIB Bank Limited, Global Securities Pakistan Limited, United Bank Limited, BMA Capital Management Limited, 2. Allied Bank Limited, KASB Bank Limited, KASB Securities Limited, AKD Securities Limited and 3. National Bank of Pakistan, Habib Bank Limited, Arif Habib Limited, Foundation Securities Limited. Privatisation Commission had invited EoIs for the appointment of Lead Manager/Book Runner(s) for the offering of approximately 2.5 percent government of Pakistan ('GOP') owned shares of Pakistan Petroleum Limited ('PPL') to the general public through the domestic stock exchange(s).
The PC Board approved the recommendations of FAS for Transaction Structure of National Power Construction Corporation (NPCC) and allowed to proceed with a strategic sale of 88 percent GoP shares of NPCC on, 'as is where is' basis after approval of the CCOP while allocation of 12 percent remaining shares for employees for distribution of Unit Certificates under Benazir Employees Stock Option Scheme (BESOS). KASB Bank is providing Financial Advisory Services for the transaction.
While finalising the Transaction Structure for Heavy Electrical Complex (HEC), the PC Board agreed with the recommendations of the Transaction Committee for revising the transaction structure as "divestment of equity stake at minimum 96 percent of the issued, subscribed and paid up share capital in HEC together with management control". PC has so far received three EOIs for HEC from 1. Niagra Mills (Pvt) Ltd, Pakistan, 2. AREVA T & D Pakistan (Pvt) Limited, France and 3. ALSTOM Grid Pakistan (Pvt) Ltd, France. The Board recommendations will be submitted to the CCOP for a decision. The PC board also adopted audited accounts of the Privatisation Commission for the year ended June 30, 2010. Earlier, the PCB reviewed the implementation status and progress of various other ongoing and upcoming transactions. The PC Board members, senior officials of the respective ministries, departments, representatives of the respective entities and officials Privatisation Commission attended the meeting.