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The Cabinet Committee on Privatisation (CCOP) on Wednesday endorsed the hand-over of the land and building of Lasbela Textile Mills to the Balochistan government for setting up the University of Agriculture, Bio-Medical and Water Sciences to meet the educational requirements of the province.
Chaired by Premier Shaukat Aziz, the CCOP directed the Privatisation Commission to sell the plant and machinery of the unit, separately. Earlier, attempts to privatize the unit had not succeeded.
The committee also approved the inclusion of the United Bank Limitedâ?Ts (UBL) initial public offering in the Privatisation programme. The CCOP meeting directed the Privatisation Commission to initiate the process of listing and initial public offering of the UBL giving preference to the small applicants in line with the governmentâ?Ts policy of Privatisation.
The meeting approved the transaction structure for the Karachi Electric Supply Corporation (KESC) thereby allowing the Privatisation Commission the sale of 51 to 73 per cent shares of the KESC to a strategic buyer. The meeting was informed that the bidding for the KESC has been scheduled on December 6, 2004.
The transaction structure involves the sale of between 51 per cent and 74 per cent of the ordinary shares in the KESC, with an innovative rights issue of cumulative, redeemable, preference shares to secure Rs 6 billion additional funding to support the continued turnaround at the KESC.
The government will retain a minimum 25 per cent stakes in the KESC for the time being to ensure commitment as a measure of comfort to the prospective buyer of the utility. In addition, the Asian Development Bank has indicated its willingness to acquire a 6.7 per cent stake alongside the successful bidder and may also provide additional funding for the turn around.
The prime minister said the Privatisation of the utility was of critical importance, as the private investor would turn the company around by increasing efficiency thereby bringing relief to the consumers.
The CCOP gave go-ahead for the transaction structure for Privatisation of the National Investment Trust Limited (NITL) with the direction that the interest of small unit holders be protected while processing the transaction. The meeting gave approval for the sale of 51 per cent equity of National Refinery Limited (NRL) and the sale of ICP Shell Company as an â?~ongoing concernâ?T. | 
