Privatisation Commission's (PC) board is likely to meet next week to review the progress being made in secondary public offering of Habib Bank Limited (HBL) and strategic sale of a minimum 88 percent government shares in National Power Construction Corporation (NPCC) and Heavy Electrical Complex (HEC), sources said. An official of PC said that the PC board is expected to meet next week and will take a major decision in offloading the government shares in HBL.
The government is expected to earn around $1.2 billion from the sale of HBL shares through global depository receipts (GDRs). The capital transaction of HBL would be completed by March next year, for which a consortium of Credit Suisse and Deutsche Bank had been appointed as financial advisers.
Sources said the board will also take a decision regarding road-shows for capital market transaction of HBL, which is likely to be started in international and local market in the first week of February. The Cabinet Committee on Privatisation (CCoP) had already approved the capital market transaction of HBL, strategic sale of a minimum 88 percent government shares in NPCC and the divestment of a minimum 96 percent government shares in HEC together with the management control.
These two entities - NPCC and HEC - were at the last stage of privatisation during the tenure of Pakistan People's Party, but the previous government did not complete the process. As the government is considering selling-off of NPCC, the PC has proposed to PC Board to engage services of a reputable financial advisory consortium to assist in NPCC privatization.
The HEC is one of the industrial units of State Engineering Corporation (SEC) engaged in the manufacture of power transformers of different types with a primary voltage rating of 66kV and 132kV, the officials said. The government is committed to selling 32 entities in the next three years. It has finalised a three-pronged strategy, which consists of 11 capital market transactions, 17 strategic private sector partnerships that includes Pakistan International Airlines and Pakistan Steel Mills and restructuring of three entities, which are to be completed in three to five years, an official added.
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