Next step: Cabinet panel approves move to offload remaining UBL shares

Paves the way for first equity transaction in 8 years.

ISLAMABAD:

The Cabinet Committee on Privatisation (CCOP) approved the transaction structure to offload the 20% remaining government shares of the United Bank Limited (UBL) on Saturday.

The transaction structure will be implemented through book building, paving way for completing the first privatisation deal in the last eight years.

The CCOP’s approval came on the heel of the International Monetary Fund’s (IMF) decision to add a new structural benchmark in its $6.7 billion IMF programme to bind the government to fast-track the process of selling Global Depository Receipts of Oil and Gas Development Company. The new condition was added during the third review of the programme, concluded on Friday.

Headed by the Finance and Privatisation Minister Ishaq Dar, the CCOP gave its approval to the proposed transaction structure, which was earlier approved by the Privatisation Commission (PC) Board. The board has constituted a transaction committee to oversee the overall transaction process.

Privatisation Commission (PC) Chairman Mohammad Zubair informed the CCOP that the transaction structure envisages offering the Pakistan government shares to both international and domestic Institutional investors and high net worth Individuals (HNWI). The structure would take place through an integrated international book building exercise.

“The transaction will be completed by June 30 and it will be first equity transaction by the Privatisation Commission in the last eight years,” said Zubair.

Dar said that due diligence has to be observed during the whole process and directed the PC to maintain transparency and fairness at all levels of the transaction. He added the Commission should not compromise on principles of transparency and fair price for the transaction.

Published in The Express Tribune, May 11^th, 2014.

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