The Privatization Commission Board has approved the issuance of Oil and Gas Development Company Limited’s exchangeable bonds of USD 500 million and constituted 6 member committee to negotiate with the consortia comprising Citibank, JP Morgan, Credit Suisse and BMA. The committee includes the representatives of Finance Division, State Bank of Pakistan among its members.
The committee would negotiate with the top ranking consortia and inform the PC Board about the outcome for proceeding further with the hiring process for the appointment of the financial advisory consortia for the issuance of OGDCL’s exchangeable bonds by monetizing up to 10% of the government of Pakistan shareholding up to 430 million shares in OGDCL.
The PC Board met under the chair of Privatization Minister Mr Ghous Bux Khan Mahar and constituted two negotiation committees for the appointment of the financial advisory consortia and issuer’s legal counsel for the exchangeable bonds of OGDCL. The PC Board also constituted another committee to negotiate with Bhandari Naqvi & Riaz and Freshfields Bruckhaus Deringer LLP for appointment of issuer’s legal counsel for OGDCL exchangeable bonds.
The PC board was informed that the recommendations of the pre qualification committee, constituted by the PC Board, jointly administered by the Privatization Commission and the Finance Division including members from the SECP, Ministry of Petroleum and Natural Resources, OGDCL, headed by a PC board member which has evaluated the request for proposal package during a presentation session by the interested parties and evaluated the technical and financial bids of the interested parties and pre qualified two parties; first comprising Citibank, JP Morgan, Credit Suisse and BMA and the second comprising Barclays Bank, Standard Chartered Bank, Merrill Lynch or Bank of America and KASB.
Mr Mahar directed the PC officials to strictly adhere to the rules while processing transactions and ensure utmost transparency at every step. While reviewing implementation status of the decisions taken during the previous board meeting, the PC Board was informed that the expressions of interest were invited from the interested parties for the divestment of 88% of the GoP shares in Heavy Electrical Complex and that the National Power Construction Company transaction was being progressed on fast track basis to be completed within the given timeframe of four months.
(Sourced from www.thenews.com.pk)
