New deadline set to offload SoEs' shares

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FE Report
The Ministry of Finance (MoF) on Thursday extended the deadline for divestment of shares, up to 49 per cent of the equity capital, of about two dozen state-owned enterprises (SoEs) in the stock market.
Three SoEs were, however, dropped from the list that was prepared a long time back, for the purpose of divestment - off-loading of shares.
The time, that was previously extended to December 31, 2010, has now been rescheduled again. The period for off-loading of shares of SoEs in the revised list will continue until December this year.
This was decided at a top-level meeting on the day at the MoF.
The chief executive of SoEs who will fail to meet the new deadline, will have to resign from their positions.
"We have set another deadline to offload the shares of SoEs. No further extension will be given to implement the decision of the government, meant for overcoming the supply-side constraints relating to availability of good shares in the capital market," Muhith told reporters after a meeting with stakeholders.
"The top bosses have to resign in case they fail to avail themselves of this last opportunity."
The meeting held at the conference room of MoF was, among others, attended by Minister for Communications Syed Abul Hossain, State Minister for Energy Enamul Haque, Civil Aviation and Tourism Minister G M Quader and senior officials concerned.
The SoEs, which were identified earlier for offloading and now dropped from the list are: Bangladesh Blade Factory Ltd, GEM Company Ltd. and Bangabandhu Bridge, Finance Minister Muhith told reporters after the meeting.
"Presently, these three companies are not in a situation to offload their shares," he said, without elaborating.
According to the decision, two listed companies -- Meghna Petroleum Ltd. and Jamuna Oil Company Ltd. will offload more of their shares to the market by February 22, this year, while three other listed ones -- Titas Gas Transmission and Distribution Company Ltd, Bangladesh Shipping Corporation, and Dhaka Electric Supply Company Ltd. -- will get time for divestment until March 31 this year.
A sizeable amount of shares of Liquefied Petroleum Gas Ltd., will also be offloaded by March 31 this year, Muhith said.
The enterprises like Bangladesh Cable Industries ltd, Telephone Shilpo Sangtha, Pragati Industries ltd, Chittagong Dry Ltd, Biman Bangladesh Airlines and Essential Drugs will come to the capital market, the latest by June 30 this year, he added.
Bakhrabad Gas Transmission and Distribution Company Ltd., will be listed by July 31 this year, the meeting decided.
Muhith said the shares of Teletalk Bangladesh Ltd. and BTCL will be offloaded by September 30, while Karnaphully Paper Mills Ltd., by December 31 this year.
The finance minister said the offloading of an additional portion of equity capital of Power Grid Company Ltd., and the cases of Jalalabad Gas T&D System Ltd., South Zone Gas Company Ltd., Hotel Sheraton and Hotel Sonargaon, for offloading of their shares which was decided earlier, will be considered later for divestment, because the companies are facing some problems concerning valuation of their assets.
A committee will be formed soon to outline the methodology for their asset valuation, which is required to be completed before offloading shares of any company, be it public or private.
Muhith said the shares of Sylhet Gas Field Company Ltd., will not be offloaded, instead its bond will be floated in the market.
Besides, the government is planning to offload shares of proposed Padma Bridge and the Bangabandhu Bridge in a package, the minister added.
UNB adds: Briefing reporters after the meeting, the finance minister said that Liquefied Petroleum Gas Ltd (LPGL), Titas Gas Transmission and Distribution Company Limited, DESCO and Bangladesh Shipping Corporation will offload shares by March 31, 2011, Bakhrabad Gad Transmission and Distribution Company Ltd., will do so by July 31, Telephone Shilpa Sangstha and Submarine Cables Company Ltd., by April 30, and CNG Company Ltd., by May 11.
Pragati Industries Ltd, Chittagong Dry Dock Ltd, Biman Bangladesh Airlines Ltd, Bangladesh Cables Ltd and Essential Drugs Company Ltd must offload their shares by June 30, while the shares of Teletalk Bangladesh Ltd and BTCL will be offloaded by September 30, 2011.
Post and Telecommunications Minister Raziuddin Ahmed Razu, Adviser on Power to the Prime Minister Towfiq-Elahi Chowdhury, and State Minister for Energy, Power and Mineral Resources Brig. Gen (retd) Enamul Haque, attended the meeting, held at the MoF on the day.
The minister said Rupali Bank Ltd., and National Tubes have already fulfilled their obligations as these two entities have entered the market.
About Power Grid Company, he said that a committee will be formed headed by the SEC chairman to evaluate its assets within one month before offloading its shares.
Rural Power Company Ltd, GEM Company Ltd, Bangladesh Blade Factory Ltd, the sugar mills under the ministry of industries, Usmania Glass Sheet Factory Ltd, Atlas Bangladesh Ltd and Eastern Cables Ltd have been dropped from the list for offloading of shares.
The meeting also set a December 31 deadline for the Karnaphuli Paper Mills Ltd., Bangladesh Insulator and Sanitary Ware Factory Ltd., and Chatak Cement Factory Ltd., for offloading of their shares.
He said the shares of both Sheraton Hotel and Hotel Sonargaon will be offloaded partially by this June, after completion of valuation of their assets. Initially, Bangladesh Biman would offload 10 per cent of its shares, and more shares will be offloaded later, he added.
He also told a questioner that all the companies would enter the market following the book-building method.
In September, Prime Minister Sheikh Hasina approved a proposal on offloading shares of concerned SoEs.
The same month, Finance Minister AMA Muhith said that the share of eight SoEs would be offloaded within 20 days.
The SoEs are - Rupali bank, Titas Gas, Atlas Bangladesh, Desco, Padma Oil, Meghna Oil, Jamuna Oil, Power Grid and Bangladesh Shipping Corporation (BSC).
The government last year decided to offload 49 per cent of its stakes with 26 SoEs and retain 51 per cent of their equity capital.