Sell-off structure for five entities proposed

Published July 23, 2020
Financial advisers have completed due diligence and draft transaction structures have also been completed. — File photo
Financial advisers have completed due diligence and draft transaction structures have also been completed. — File photo

ISLAMABAD: The Privatisation Board on Wednesday recommended transaction structures for five public sector entities including divestment of 20 per cent government shares of the Pakistan Re-Insurance Company Ltd for approval to the Cabinet Committee on Privatisation.

The board recommended transaction structures for the House Building Finance Corporation (HBFCL), Services International Hotel (SIH), Lahore, Jinnah Convention Centre (JCC), Islamabad and the First Women Bank Limited (FWBL). These entities are part of government’s active privatisation programme.

The Privatisation Commission plans to complete the SIH and JCC transactions by December, while those of the FWBL and HBFCL by March 2021.

Financial advisers have completed due diligence and draft transaction structures have also been completed.

In case of the JCC and SIH, it has been proposed that the status of these entities will be changed from amenities to commercial for the highest possible valuation.

The Privatisation Commission said the conversion proposal will be submitted to the federal cabinet for approval.

Privatisation Minister Muhammadmian Soomro, while chairing the board meeting, adivsed the officials to complete all requisite documentations before placing these structures in front of the CCoP and cabinet. He urged the meeting that the matters regarding subject transactions should be completed steadily to avoid unnecessary delays.

During the meeting, an update on the ongoing privatisation of the public sector entities was also shared with board members, including two regasified liquefied natural gas (RLNG) power plants, Pakistan Steel Mills, and federal government properties.

Published in Dawn, July 23rd, 2020

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