10pc OGDCL bond float to trigger privatisation: Minister

Minister for Privatisation, Ghous Bakhsh Mahar, has said that the government’s plan to move forward on privatisation of state-owned entities would start with the floating of 10 per cent OGDCL bonds within a month, after the nod from financial advisors.
In an exclusive interview with Pakistan Today, while presenting an overview of the country, he said with growing urbanisation and subsequent mounting demand for utilities, foreign entrepreneurs have a wide variety of sectors to choose from for investment purposes.
He said the domestic political landscape is driven by a democratically elected government, independent judiciary and a vibrant media, together with constitutional reforms underpinned by the 18th amendment, National Finance Commission (NFC) award and transfer of major ministries to provinces. The government initially planned to sell 10 per cent shares of its blue chip entity to foreign investors during the last fiscal year, but the transaction was delayed at the last minute due to uncertainty in the international market arising form the Greek debt issues.
The minister said the strategic sale of 96 per cent shares of Heavy Electrical Complex (HEC) Taxila along with its management control is planned by November.
Three companies have shown interest including Nigeria Mills, AREVA of France, and ALSTOM Grid of France. He said strategic sale of 88 per cent shares of National Power Construction Company (NPCC) would be finalised by October 2011 along with the management control. For this purpose due diligence by the financial advisor is under process. The minister said secondary public offering of 2.5 per cent share of the Pakistan Petroleum Limited (PPL) out of its total 1,195 million shares would be completed by November this year.
The total value of PPL is estimated at Rs252 billion and presently its share in the market is valued at Rs211 per share. The government sold its 102.87 million shares in 2004 for Rs55 per share, which generated Rs5.6 billion in proceeds. During the second phase this fiscal year, the government plans to off load up to 10 per cent shares of the National Bank of Pakistan (NBP) out of its 1682 million total shares. The government intends to complete the deal by June 2012. Similarly, plans are in place for the secondary offering of 10 per cent shares of Habib Bank Limited (HBL) out of its total 1100 million shares, he said.