Finance Minister Ishaq Dar on Monday chaired a meeting of Cabinet Committee on Privatisation (CCoP) and approved transaction structure for the divestment of up to 10% of GoP shares in Oil and Gas Development Company Limited (OGDCL) through capital markets. The Chairman Privatisation Commission, Muhammad Zubair gave the presentation and sought approval of transaction structure from the CCOP. An official said the meeting has approved the structure of transaction.
However, floor price has not been approved. The recommended Capital Market Transaction Structure envisages offering shares to the institutional international and domestic investors through a combined international Book Building process. International investors will get an option to buy either Ordinary Shares or GDRs or both. The offering to international investors will be made through an Offering Circular, fully compliant with the US Securities Act, 1933.
After completion of Book Building process, a domestic public offering for the general public and employees of the company will be carried out using the Subscription method. The offering to domestic investors will be made through an Offer for Sale Document, to be approved by the domestic Stock Exchanges and Securities and Exchange Commission of Pakistan (SECP).
The PC Board in its meeting held on April 22, 2014 had approved the appointment of consortium comprising M/S Merrill Lynch International, Citigroup and KASB Bank to act as Financial Advisor (FA) for the OGDCL transaction. The Finance Minister said that "unusual circumstances have delayed the transaction for almost three weeks but we are trying to make up for the loss of time, money and international standing in the shortest possible time. One feels a lot of pain that the hard work done by our government in the last fourteen months is threatened by the reckless behaviour of certain people. If things had not been so as they are for the last one month, I am sure that we would have saved the hassle of arranging road shows for such a profitable investment opportunity".
Omar Iqtidar, Management Director Citibank, in his presentation briefed the Minister that they have planned a 21-day execution window for the completion of this transaction. The international market road shows will be held in Hong Kong, Singapore, the UAE, Frankfurt/Stockholm, London, New York, Boston and Chicago.
The meeting was attended by Senator Pervaiz Rashid, Minister for Law, Justice and Human Rights, Ahsan Iqbal, Minister for Planning, Development and Reforms, Abbas Khan Afridi, Minister for Textile Industry, Muhammad Zubair, Chairman Privatisation Commission, Tahir Mehmood, Chairman SECP, M. Shahzad Arbab, Secretary Commerce Division, Dr Waqar Masood, Finance Secretary, Abid Saeed, Secretary Petroleum and Natural Resources, Hassan Nawaz Tarrar, Secretary Planning, Imran Afzal Cheema, Secretary BoI and other senior government officials.
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