ISLAMABAD  - The PML-N government is all set to divest the shares of Allied Bank Limited (ABL) on Thursday that would generate around Rs13 billion for the national kitty.
Through selling of around 10 percent remaining shares in ABL, the govt wants to accumulate around Rs13 billion through the secondary public offering, sources in Privatisation Commission informed. They informed that floor price of ABL shares would be notified through notice to Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange after market close on December 09, 2014.
"The book building process will take place on December 10 and 11", he added. The Cabinet Committee on Privatisation (CCoP) here on November 26 approved the Transaction Structure for the Divestment of GoP residual shares in the ABL (Ltd) as recommended by the Privatisation Commission.
In 1991, the first government of the PML-N had sold 51pc shares of ABL at Rs971.6 million. The Government of Pakistan is offering 131,275,073 Ordinary Shares representing 11.5pc of the Total Paid Up Share Capital of Allied Bank Limited at a Floor Price shall be at a premium to the par value of PKR 10.
The government after completing two successful transactions of United Bank Limited (UBL) and Pakistan Petroleum Limited (PPL) had faced a jolt when it scrap the Oil and Gas Development Company Limited (OGDCL) deal due to the cold response from international investors. Therefore, the ABL's transaction would be a test for the government to revive the confidence of foreign investors.
Later, after completing ABL transaction, the government would divest its shares in Habib Bank Limited (HBL). The government is expecting to generate $1.2 billion from the sale of HBL shares through global depository receipts. Currently, the government has 42.5 percent shares in HBL, which would be divested before March 2015 as per government's plan.
It is worth mentioning here from 2003 to 2007, the Musharraf government sold 58.5pc percent shares of HBL at Rs34.6 billion in two transactions.