ISLAMABAD: The Cabinet Committee on Privatisation (CCOP) on Wednesday approved the transaction structure for divestment of the government’s remaining 10% stake in Allied Bank Limited.
It has offered shares to both international and domestic institutional investors, high net worth individuals and general public through the Karachi Stock Exchange (KSE) book building system. The offering will be via an Officer for Sale Document (OFSD) in compliance with the applicable regulations of the domestic stock Exchange(s) and the Securities Exchange Commission of Pakistan (SECP), according to a handout issued by the Finance Ministry.
The CCOP meeting was chaired by Finance Minister Ishaq Dar through a video link from London. The government is expecting roughly Rs13 billion from the transaction.
Privatisation Commission (PC) Chairman Mohammad Zubair briefed the meeting about the key features of the transaction structure. He informed the meeting that the PC Board earlier in its meeting on Wednesday morning reviewed and approved the transaction structure proposed by lead managers and book runners before its submission to the CCOP.
As per key features of the recommended structure, the strike price will be determined via the Dutch auction method as envisaged in KSE book building system and the floor price as approved by the CCOP and the PC board will be notified prior to the book-building exercise, planned for December 11-12, 2014.
The CCOP after detailed deliberations accorded approval to the proposed structure as recommended by the privatisation commission.
Published in The Express Tribune, November 27th, 2014.
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