ISLAMABAD: The Cabinet Committee on Privatization (CCOP) here on Friday unanimously approved strike price of Rs. 110 per share for divestment of Government's residual shares in Allied Bank Limited.
The committee which met under the chairmanship of Finance Minister, Ishaq Dar also approved allocation of shares to successful bidders.
Earlier Privatization Commission Board in its meeting held on December 11 recommended the `Strike Price of Rs.110 and allocation of GOP Shares to the successful bidders as specified in the Offer for Sale Document (OFSD).
The CCOP consequently considered the recommendations of the PC Board early Friday and approved the `Strike Price'.
A total of 131 million shares were offered for divestment in the stock market. Against this, orders for 185 million shares have been placed, reflecting overwhelming interest of the investors.
Chairman Privatization Commission Mohammad Zubair informed the meeting that there has been a fine mix of local and foreign exchange component in the orders placed for shares.
Against the strike price of Rs.110 the orders placed are worth Rs. 14.4 billion inclusive of $ 20 million foreign exchange component.
There has been encouraging response from home and abroad and the transaction has been completed in a record 19 working days, Zubair added.
He further said that strike price of Rs.110 per share translates into a discount of only Rs.2.76 per share to the closing price of Rs.112.76 on December 11, 2014, i.e. a minimal discount of 2.76 percent to the closing price on December 11, 2014.
This is one of the lowest discounts offered for similar transactions anywhere in Asia over the last several years, Zubair remarked.
Finance Minister Ishaq Dar chaired the meeting on video link from Lahore which was attended by Khurram Dastgir, Minister for Commerce, Pervaiz Rashid, Information Minister, Chairman Privatization Commission, Muhammad Zubair, Secretary Privatization Commission, Ahmad Nawaz Sukhera and Secretary Finance Dr Waqar Masood Khan.
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