Finance Minister, Senator Mohammad Ishaq Dar chaired the meeting of Cabinet Committee on Privatization (CCOP) today at the Finance Ministry.
Chairman Privatization Commission, Mr. M. Zubair in his presentation sought approval for the “Transaction Structure for the Divestment of up to 10% GOP shares in Oil and Gas Development Company Limited (OGDCL) through capital markets”.
The recommended Capital Market Transaction Structure envisages offering shares to the institutional international and domestic investors through a combined international Book Building process. International investors will get an option to buy either Ordinary Shares or GDRs or both. The offering to international investors will be done through an Offering Circular, fully compliant to Reg S/144 A of the US Securities Act 1933.
After completion of Book Building process, a domestic public offering for the general public and employees of the company will be carried out using the Subscription method. The offering to domestic investors will be done through an Offer for Sale Document, to be approved by the domestic Stock Exchanges and Securities and Exchange Commission of Pakistan (SECP).
PC Board in its meeting held on April 22, 2014 had approved the appointment of consortium comprising of M/S Merrill Lynch International, Citigroup and KASB Bank to act as Financial Advisor (FA) for the OGDCL transaction.
The Finance Minister said that “unusual circumstances had delayed the transaction for almost three weeks but we are trying to make up for the loss of time, money and international standing in the shortest possible time. One feels pained that the hard work done by our government in the last fourteen months is threatened by the reckless behavior of certain people. If things had not been so as they are for the last one month, I am sure that we would have saved the hassle of arranging road shows for such a profitable investment opportunity”.
Mr. Omar Iqtidar, Management Director Citibank in his presentation briefed the Minister that they have planned a 21-day execution window for the completion of this transaction. The international market road shows will be held in Hong Kong, Singapore, UAE, Frankfurt/Stockholm, London, New York, Boston and Chicago.
The meeting was attended by Senator Pervaiz Rashid, Minister for Law, Justice and Human Rights, Mr. Ahsan Iqbal, Minister for Planning, Development and Reforms, Mr. Abbas Khan Afridi, Minister for Textile Industry, Mr. Muhammad Zubair, Chairman Privatization Commission, Mr. Tahir Mehmood, Chairman SECP, Mr. M. Shahzad Arbab, Secretary Commerce Division, Dr. Waqar Masood, Finance Secretary, Mr. Abid Saeed, Secretary Petroleum and Natural Resources, Mr. Hassan Nawaz Tarrar, Secretary Planning, Mr. Imran Afzal Cheema, Secretary BOI and senior officials of the government.