Pakistan Stock Exchange (PSX) is scheduled to open bids on Monday, December 5, 2016 submitted by foreign strategic investors and local institutions to acquire 40 percent stake of the bourse. Initially, 17 bids have been submitted by foreign and local strategic investors and financial institutions. Foreign strategic investors are a consortium of Nasdaq and two UK-based funds and Chinese based consortium of Shanghai and Shenzhen stock exchanges with one Chinese fund.
Among the local financial institutions, MCB Bank, Allied Bank, Pak-Kuwait Investment Company, Pak-Oman Investment Company and others had submitted their bids to acquire the 40 percent stake. "Yes, the bids submitted by foreign strategic investors and local institutions would be opened on Monday, December 5, 2016," Shehzad Chamdia, Chairman PSX Divestment Committee confirmed this to Business Recorder Tuesday.
Among the 17 bidders, there are only two strategic investors, ie, consortium of Nasdaq along with UK-based funds and consortium of Shanghai Stock Exchange, Shenzhen Stock Exchange and the Chinese fund while others are local financial institutions. Chamdia said after opening the bids, a letter of acceptance would be issued to the successful bidder and then a formal sale-purchase agreement would be signed between the parties. He said the deadline for completion of this bidding process and the sale of 40 percent PSX stake to strategic investors is December 27, 2016. He was hopeful that the process would be completed before the deadline. As per the demutualization process, the remaining 20 percent shares of PSX would be offered to general public through Initial Public Offering (IPO) within 6 months after the completion of the bidding process.