Sanie Khan
Possible Mode of Sell off of Government Stake : Analyst Report
As part of its privatization plan, the government will sell half a dozen enterprises including two hotels in New York and Paris on immediate basis, offload shares in 10 companies in international and domestic capital markets and hand over management control of a dozen enterprises to the private sector. The shares in state-owned units that the previous government gave away to the employees under the Benazir Employees Stock Option Scheme will also be offered to private investors. Overall, 31 enterprises, worth billions of dollars and belonging to sectors such as oil and gas, banking and finance, power, industries and real estate, will be privatized and restructured. Last week, the Cabinet Committee on Privatization (CCOP) approved the privatization and restructuring strategy for these enterprises. In case of profitable companies like banks and oil and gas firms, the government would not sell all of its shares.
| Company Name | Possible Mode of Sell off of Government Stake |
| Pakistan Steel Mills | Privatize |
| Pakistan International Airlines | 2 phases of Transaction 1st Phase: Money Injection by Govt 2nd Phase: 26% sell-off with management control |
| Oil & Gas Development Company | Sell of in International Markets |
| Pakistan Petroleum Limited | Shares offloaded both in Intl. & domestic Markets |
| Mari Petroleum Limited | 2nd Offering or Block sale to JV partner |
| Govt Holding Private Limited | Initial Public Offering or Working Interest in its specific blocks will be sold |
| Pak- Arab Refinery Company | IPO subject to consent of JV partner |
| Pakistan State Oil | Plan to segregate operations and privatize some |
| Sui Southern Gas Company Limited | Plan to segregate operations and privatize some |
| Sui Northern Gas Company Limited | Plan to segregate operations and privatize some |
| Habib Bank Limited | Secondary Public Offering |
| United Bank Limited | Secondary Public Offering |
| Allied Bank Limited | Secondary Public Offering |
| National Bank of Pakistan | Govt will reduce stake and give away management control or Block sale of qualified investor |
| State Life Insurance Corporation | Initial Public Offering |
| National Insurance Company Limited | Divested along with management control |
| Pakistan Reinsurance Company Limited | Govt will reduce stake and give away management control |
| National Investment Trust | Privatize |
| Small & Medium Enterprise Bank | Privatize or offered for merger with 2nd/3rd tier Bank |
| Heavy Mechanical Complex | Privatize |
Syed Zaki Hussain
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