- July 01, 2001
EoIs invited to off-load govt shares: NITL sell-off
The Privatization Commission (PC) has invited
Expressions of Interest (EoIs) from reputable international or
Pakistani parties (participating solely or as part of a consortium)
for acquiring 58 per cent government shares in National Investment
Trust Limited (NITL), the Asset Management Company of National
Investment (Unit) Trust ("The Fund").
A handout in this regard, issued on Wednesday, said
that the Fund is the largest open-end mutual fund in Pakistan with an
approximate size of Rs18.5 billion. The Fund provides a one window
entry into Pakistan's equity markets as it is invested in
approximately 600 of the 730 listed companies at the Karachi Stock
Exchange (Guarantee) Limited.
NITL has approximately 66,000 unit holders and over
20 branches across the country. The government through PC intends to
divest/sell strategic shares in NITL. PC will provide information
package on receipt of EOI statement of qualification (SOQ)
documentation which will require the potential investor to provide
detailed information memorandum including, but not limited to
financial strength and net worth, management experience track record
in fund/asset management and financial services and or track record of
corporate governance, experience track record in developing/emerging
markets, profile and overview of the interested parties, annual report
on financial statements for the last three years in respect of
corporate entities and their details of shareholding/ownership
PC has asked the interested parties to submit their
EOI latest by July 30, 2001 with a non-refundable fee of Rs25,000 or
$400. It is envisaged that once the selection of qualified potential
investors has been made on the basis of information provided by them
in SOQs, participants in the process shall be provided with additional
information on NITL whereupon PC shall commence with a competitive
bid, negotiation and sale process in accordance with the privatization
law of Pakistan. PC reserves the right not to respond to any request
for preliminary or other information.
Reserves shoot up to $2.8 billion
Pakistan's liquid foreign exchange reserves shot up
to $2.825 billion on June 16 from $2.375 billion on June 9. The State
Bank said in a statement on Thursday that the total reserves more than
$1.743 billion held by the central bank and over $1.081 billion held
by all other banks.
Senior bankers said the reserves rose by $450
million in the week ending on June 16 as SBP received a $350 million
from the World Bank and another $100 million from state-run National
The WB money came in the shape of structural
adjustment credit for financing structural reforms currently being
implemented in banking and other sectors of the economy whereas NBP
offered $100 million to finance oil imports by state-run Pakistan
State Oil. SBP will provide foreign exchange cover to import letters
of credit of PSO out of this facility.
EoIs invited for POL shares
Privatization Commission has invited Expressions of
Interest (EOIs) for sale of equity stake of 35 per cent (approximately
15.8 million) shares of Pakistan Oilfields Limited (POL) through a
book building process or block sale/tender offer through open bidding
to domestic and international institutional investors and the general
public. JP Morgan is the Lead Manager for this transaction.
Pakistan Oilfields Limited (POL) is an Oil and Gas
Exploration and Production (E and P) company and has at present five
of its own producing fields as well as four fields/concessions that it
operates in joint venture and six fields/concessions in which it is a
working interest owner. POL is also actively pursuing exploration and
development opportunities in these field/concessions. Furthermore, POL
owns and operates a network of pipelines for transportation of crude
oil to Attock Refinery Limited in Rawalpindi. POL has also had two
subsidiaries, CAPGAS (Private) Limited, which markets LPG, and Attock
chemicals (Private) Limited, which produces sulphuric acid.
Tea price up
The prices of blended and imported tea brands will
go up by Rs10-15 per kg following a five per cent rise in import duty
of tea to 30 per cent in the budget.
The rupee shed 40 paisa more on Monday and closed
at 63.70/63.75 per US dollar in inter-bank market on the back of heavy
dollar buying by importers amidst stagnant supply.
Senior bankers said the importers made heavy
forward dollar buying forcing the banks to make matching ready
purchases that lifted the dollar up. They said most of the importers
were purchasing dollars in what can be termed as typical budget-led
buying euphoria whereas exporters had suspended sale of export proceed
anticipating changes in the budget to their advantage.
UK firm plans investment
Damson Hill PIc, a UK-based group, has worked out a
strategy to bring foreign exchange for investment in Pakistan
particularly in textile and financial sectors.
Damson Hill, constituting several European
companies, has bought Pakistan Industrial & Commercial Leasing (PICL)
and Prime Insurance Company Ltd and taken over the charge of both
Ghandhara Leasing, IMLC demerged
The merger of Ghandhara Leasing Company with the
International Multi Leasing Corporation, initiated in February this
year, has been discontinued due to some technical problems, the
company announced on Thursday.
The Board in their recent meeting have decided to
merge Ghandhara Leasing with Al-Zamin Leasing Modaraba (Al-Zamin) in
order to comply with the capital adequacy requirement of SECP. Al-Zamin
and its Associates already hold majority share-holding and management
control of Ghandhara Leasing.