FE Report (November 3, 2010
Prime Minister Sheikh Hasina approved Monday a proposal to offload upto 49 per cent stakes the government holds in 27 state firms by December, a top finance official said Tuesday.
The Prime Minister also endorsed the proposal to relinquish additional 20-25 per cent shares of eight government-owned companies listed in stock markets.
The Finance Ministry asked Tuesday relevant ministries to implement the decision "without any further delay", the official said.
The directive came a day after the Prime Minister's approval to the proposal.
The objective, another finance official said, is to stabilise the capital market where stock prices of most of the listed firms are believed to be "overpriced."
'The latest decision will bring positive result to the capital market, which has been crying out for good shares for long," Shafiqur Rahman Patwary, secretary, Banking and Financial Institution Division of the Finance Ministry told the FE.
He said that the Finance Ministry has already passed on the Prime Minister's directive to the ministries concerned to implement it by deadline.
Of the 27 enterprises, nine fall under the Power and Energy Ministry, eight fall under the Industries Ministry, four are under the Postal and Telecommunication Ministry, and three under the Civil Aviation and Tourism Ministry. The rest three are attached to the Communications, Shipping and Health ministries.
The state-run forms of Power and Energy Ministry are Liquefied Petroleum Gas Ltd, Bakhrabad Gas Transmission and Distribution Company Ltd, Gas Transmission Company Ltd, Jalalabad Gas Systems Ltd, Pashchimanchal Gas Company Ltd, Sylhet Gas Fields Company Ltd, Bangladesh Gas Fields Company Ltd, Rupantarito Prakritik Gas Cpompany Ltd and Rual Power Company Ltd.
Five out of eight enterprises under the Industries Ministry have to offload 49 per cent of their shares as approved by Sheikh Hasina, the official said.
The state-owned enterprises (SoEs) include Pragati Industry Ltd, Chittagong Dry dock Ltd, GEM Co. Ltd, Bangladesh Blade Factory Ltd and Panchagargh Sugar Mill.
The remaining three under the Industries Ministry need to offload 25 per cent share of their total holdings. The companies are Karnaphully Paper Mills Ltd, Bangladesh Insulator and Sanitary Wear Factory Ltd and Chatak Cement Factory Ltd
Two out of four SoEs under the Ministry of Postal and Telecommunication, according to the decision, will have to offload share "within their comfort zones" by the set deadline.
The Finance Ministry's request did not mention how much share should be offloaded by Bangladesh Cable Shilpa Ltd and BTCL under the same ministry.
However, the directive asked the Teletalk Bangladesh Ltd to offload 49 per cent of its stakes of its total holdings.
The Essential Drugs Company Ltd has to offload 25 per cent of its share by next December, according to the ministry letter.
Bangladesh Shipping Corporation has to offload its "considerable" slice through Repeat Public Offer by the set deadline.
Officials said the Ministry of Communications has to take steps to issue bond against the toll revenue of Bangabandhu Bridge.
The directive, sent to Ministry of Civil Aviation, asked to issue Initial Public Offerings (IPOs) of Hotel International Ltd (Sonargaon Hotel) and Bangladesh Services Ltd (Sheraton Hotel) by December but didn't mention the percentage of share to go public.
Currently, DESCO, BSC, Powergrid, Padma Oil, Jamuna Oil, Meghna Petroleum, Titas Gas and Atlas Bangladesh are among the SoEs listed on stick exchanges.
Of the listed firms, a 50.35 per cent share of Padma oil is held by the government, 31.34 per cent by institutes and the rest 18.31 per cent is held by public.
Besides Padma, other listed SoEs have to offload another 15 to 25 per cent share by December this year, the letter of Banking and Financial Institution said.
A top official at the Power Division said the ministry would take steps shortly to implement the government's decision.
The Prime Minister also endorsed the proposal to relinquish additional 20-25 per cent shares of eight government-owned companies listed in stock markets.
The Finance Ministry asked Tuesday relevant ministries to implement the decision "without any further delay", the official said.
The directive came a day after the Prime Minister's approval to the proposal.
The objective, another finance official said, is to stabilise the capital market where stock prices of most of the listed firms are believed to be "overpriced."
'The latest decision will bring positive result to the capital market, which has been crying out for good shares for long," Shafiqur Rahman Patwary, secretary, Banking and Financial Institution Division of the Finance Ministry told the FE.
He said that the Finance Ministry has already passed on the Prime Minister's directive to the ministries concerned to implement it by deadline.
Of the 27 enterprises, nine fall under the Power and Energy Ministry, eight fall under the Industries Ministry, four are under the Postal and Telecommunication Ministry, and three under the Civil Aviation and Tourism Ministry. The rest three are attached to the Communications, Shipping and Health ministries.
The state-run forms of Power and Energy Ministry are Liquefied Petroleum Gas Ltd, Bakhrabad Gas Transmission and Distribution Company Ltd, Gas Transmission Company Ltd, Jalalabad Gas Systems Ltd, Pashchimanchal Gas Company Ltd, Sylhet Gas Fields Company Ltd, Bangladesh Gas Fields Company Ltd, Rupantarito Prakritik Gas Cpompany Ltd and Rual Power Company Ltd.
Five out of eight enterprises under the Industries Ministry have to offload 49 per cent of their shares as approved by Sheikh Hasina, the official said.
The state-owned enterprises (SoEs) include Pragati Industry Ltd, Chittagong Dry dock Ltd, GEM Co. Ltd, Bangladesh Blade Factory Ltd and Panchagargh Sugar Mill.
The remaining three under the Industries Ministry need to offload 25 per cent share of their total holdings. The companies are Karnaphully Paper Mills Ltd, Bangladesh Insulator and Sanitary Wear Factory Ltd and Chatak Cement Factory Ltd
Two out of four SoEs under the Ministry of Postal and Telecommunication, according to the decision, will have to offload share "within their comfort zones" by the set deadline.
The Finance Ministry's request did not mention how much share should be offloaded by Bangladesh Cable Shilpa Ltd and BTCL under the same ministry.
However, the directive asked the Teletalk Bangladesh Ltd to offload 49 per cent of its stakes of its total holdings.
The Essential Drugs Company Ltd has to offload 25 per cent of its share by next December, according to the ministry letter.
Bangladesh Shipping Corporation has to offload its "considerable" slice through Repeat Public Offer by the set deadline.
Officials said the Ministry of Communications has to take steps to issue bond against the toll revenue of Bangabandhu Bridge.
The directive, sent to Ministry of Civil Aviation, asked to issue Initial Public Offerings (IPOs) of Hotel International Ltd (Sonargaon Hotel) and Bangladesh Services Ltd (Sheraton Hotel) by December but didn't mention the percentage of share to go public.
Currently, DESCO, BSC, Powergrid, Padma Oil, Jamuna Oil, Meghna Petroleum, Titas Gas and Atlas Bangladesh are among the SoEs listed on stick exchanges.
Of the listed firms, a 50.35 per cent share of Padma oil is held by the government, 31.34 per cent by institutes and the rest 18.31 per cent is held by public.
Besides Padma, other listed SoEs have to offload another 15 to 25 per cent share by December this year, the letter of Banking and Financial Institution said.
A top official at the Power Division said the ministry would take steps shortly to implement the government's decision.
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