ISLAMABAD - The PML-N government is all set to disinvest the shares of United Bank Limited (UBL) on June 3 2014, a privatisation activity taking after a gap of eight years in the country, which would generate approximately $400 million.
Minister of State/ Chairman Privatisation Commission Mohammad Zubair said that government would disinvest the 20 percent shares of United Bank Limited in capital market on June 3 2014. Talking to The Nation on Friday, the State Minister said that government would hold road shows in Karachi as well as in others international cities including New York, London, Dubai, Chicago, Hong Kong and Myanmar from May 15 to 26 2014 prior to the disinvestments of shares of UBL. “This is a big transaction and we are expecting around $400 million for the disinvestments of UBL share”, said Mohammad Zubair. He added that this would be the first activity of the Privatisation Commission since 2006. Pakistan is going for privatisation of any department/ entity after a gap of eight years. Meanwhile, board of directors of Privatisation Commission met on Friday under the chairmanship of State Minister for Privatisation Mohammad Zubair to approve the transaction structure of UBL. The board has approved and now the Cabinet Committee on Privatisation, under the chair of Finance Minister Senator Ishaq Dar, would consider the transaction structure of the Bank in today’s (Saturday) meeting.
Chairman Privatisation Commission further informed that government would go for the privatisation of Pakistan Petroleum Limited soon after the completion of disinvestments process of UBL, which would end on June 3 2014. The divestment of 10 percent shares of Pakistan Petroleum Limited (PPL) through local stock exchanges would be completed by third week of June this year with expected proceeds of Rs20-25 billion.
Meanwhile, according to brief statement issued by Privatisation Commission, Board Meeting of Privatization Commission was held today under the Chairmanship of Mohammad Zubair, MoS/ Chairman Privatisation Commission. The Board approved the transaction structure for United Bank limited (UBL) and recommended it for the Cabinet Committee on Privatisation (CCOP) approval. The Board also approved some administrative issues for Privatisation Commission administration. The Board was apprised about the extension issued in respect of submission of EOI for PIA transaction as requested by the interested parties, being complex transaction in nature. The Members including Arsala Khan Hoti, Nasiruddin Ahmad, Zafar Iqbal Sobani, Farooq Khan, Khurram Schehzad, Zafar Iqbal, Zaffar Iqbal and Sardar Ahmad Nawaz Sukhera, Secretary Privatisation Commission attended board meeting.
It is worth mentioning here that government had earlier planned to privatise three entities namely OGDCL (Oil and Gas Development Company Limited), PPL (Pakistan Petroleum Limited) and UBL (Untied Bank Limited) before June 30 this year. But, later, the government has changed its plan and decided to privatise OGDCL in next financial year 2014-15, likely in September 2014.
Mohammad Zubair, few days back, told journalists that ten percent shares of OGDCL at London Stock Exchange require oil and gas reserve certification and financial results of up to April 2014 that was a lengthy process and may not be completed by mid-May.
Then the regulators in London required at least four weeks for approvals but then Europe remains almost close for business during August and hence the entire exercise of financial results and oil and gas certification would need to be done again. He expected $850 million from sale of 10 per cent shares of OGDCL.