The government Tuesday privatised the National Power Construction Company (NPPC), fetching Rs 2.5 billion. The government of Pakistan has sold 88 percent of the total shares or 1.76 million of its shares in NPCC to the Saudi Arabia''s company M/s Mansour Al Mosaid. The remaining 12pc shares are owned by the company''s employees under the Benazir Employees Stock Option Scheme.
M/s Mansour Al Mosaid Company has offered maximum price for NPCC, ie Rs 2.5 billion at Rs 1420 per share. The other two bidders, Habib Rafiq-led consortium offered Rs 925 per share and Zahir Khan Brothers and Reliable Engineering Limited consortium offered Rs 344.5 per share. "It was the first strategic sale in the last ten years. First of many to be offered in next few years," Minister of State and Chairman Privatisation Commission (PC) Mohammad Zubair said during the bidding process of NPCC. The government''s privatisation programme has so far been restricted to capital market transactions.
Zubair said that government would also go for the privatisation of loss-making public sector entities including Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and power generation companies in the next few months. "PIA, PSM and FESCO are on the active list of privatisation," he added. The NPCC has remained a profitable entity for the last many years; its balance sheet has remained debt free, giving a significant room to prospective buyers to raise finances from banks for further expansion.
Earlier in February 2015, CCoP had approved the transaction structure for the divestment of NPCC. NPCC was established in 1974 by the Government of Pakistan under the Federal Ministry of Water and Power with the special objective of executing engineering projects speedily and economically, not only at home but also in other countries. According to officials a total 16 parties had expressed their interest in the bidding process and seven were finally selected on the recommendations of the Financial Advisors as the pre-qualified parties on May 8, 2014.
Three companies were qualified to participate in the bidding process. A consortium of Habib Rafique Construction Company and Frontier Works Organisation (FWO) as well as Zahir Khan Construction Company and a Saudi Company Mansour Al Mosaid had deposited their earnest money.
Later, the Cabinet Committee on Privatizations under the chairmanship of Finance Minister Ishaq Dar with consensus, approved divestment of 88% GoP shares in the NPCC. Chairman Privatisation Commission (PC), Mohammad Zubair briefed the chair about the bidding process. He said that out of the three qualified bidders, M/s Mansour Al Mosaid Company of Saudi Arabia submitted the highest bid of Rs 1420 per share which is 26.9 % higher than the CCOP approved Reference Price of Rs 1119/- per share and for 88% GoP shares (1760,000 Nos) of NPCC, the total thus comes up to Rs 2,499,200,000/-.(Rs 2.4992 billion).
The other two bidders, ie., consortium of Ms Habib Rafiq Ltd and M/s Frontier Works Organisation, Pakistan, and Consortium of M/s Zahir Khan Brothers and M/s Reliable Engineers Services(Pvt) Led Pakistan offered Rs 925/- and Rs 344.50 per share respectively. The Chairman PC further said that the PC Board in its meeting had approved the highest bid. CCOP accordingly gave approval to the divestment of GoP shares in NPCC to M/s Mansour Al Mosaid Company, being the highest bidder.
The bidding, it may be added, was held Tuesday morning in the presence of representatives of bidders at Serena, Islamabad and was chaired by Chairman Privatisation Commission. A large number of print and electronic media representatives and other stakeholders were also present.
Finance Minister, Senator Mohammad Ishaq Dar congratulated the Chairman PC and all the members of his team for conducting the whole process fully in accordance with the laid out rules and procedures. He also appreciated the NPCC officials for their co-operation to the PC for carrying out the divestment process.
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