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Government of
Pakistan
Privatisation Commission
CCOP ACCEPTS
HIGHEST OFFER OF $ 2.599 BILLION BY ETISALAT
Islamabad, June 20, 2005
The Cabinet Committee on Privatisation (CCOP)
approved the highest bid of US $ 1.96 per share (equivalent to Pak Rs.117.01 per
share) offered by Etisalat (UAE) for 26% strategic stake of PTCL. This
translates into US $ 2,598,960,000 (Pak Rs.155,157,912,000). Implied market
capitalization of PTCL based on the above bid would be Pak Rs.596,761,200,000.
The CCOP met under the chairmanship of the Prime Minister Mr. Shaukat Aziz here
today.
The CCOP felt that the price offered by Etisalat was in line with government's
expectation and reflects the value of PTCL. It also felt that this partnership
would create new value for the PTCL and Etisalat and further strengthen the
existing strong bonds of friendship between Pakistan and the United Arab
Emirates.
Earlier on Saturday, the 18th June, 2005, bidding for the sale of 26% shares of
PTCL was held under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister
for Privatisation & Investment who was accompanied by Mr. Owais Ahmed Khan
Leghari Minister for I. T & Telecom and Sheikh Rashid Ahmed Minister for
Information & Broadcasting. Three parties, namely China Mobile, Etisalat and
Sing Tel participated. China Mobile offered bid of Pak Rs.63.48 per share (total
Rs.84,173,167,260) and Sing Tel Pak Rs.52.54 per share (Pak Rs.69,662,736,000).
The CCOP noted that the PTCL transaction is a land mark for the privatisation
process in Pakistan as three world class players participated in it. The
participation of these players reflects the confidence in the overall policies
of the Government with particular reference to de-regulation policy and
investment opportunities in Pakistan. This also shows confidence in the
privatisation process. The meeting further noted that the 62% shares of PTCL
would remain with the Government. The private sector management will increase
efficiency in the company, which in turn, increase the value of GOP's 62%
shareholding.
The CCOP also issued directions to the Privatisation Commission that all the
applicants who have applied for allotment of shares in response to subscription
for UBL IPO be allotted shares immediately.
The CCOP appreciated the efforts made by Ministries of Information Technology
and Telecom, Privatisation & Investment, Privatisation Commission and all others
involved directly or indirectly in this transaction.
The Minister for Information Technology, Minister for Privatisation &
Investment, Minister for Labour & Manpower, Minister for Petroleum & Natural
Resources and other high officials of respective
Ministries/Divisions/Departments attended the meeting.
Source:
http://www.privatisation.gov.pk/Handout/HO-AR-05/June-05/HO-2062005%20CCOP%20Accepts%20Highest%20Offer%20of%20$2.599%20Billion%20by%20Etisalathandout.htm |