Uniform guideline for asset revaluation of SoEs soon
FE Report | Sunday, 13 March 2011
FE Report
The Ministry of Finance (MoF) has formed a five-member committee to formulate a uniform guideline for the purpose of revaluation of the assets of the state-owned enterprises (SoEs) concerned prior to the offloading a part of their stakes onto the capital market, official sources said. Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker will act as the convener of the committee, a top official of the ministry said. The committee has been given one month's time to complete its task. The specialized committee includes experts from both public and private sectors. It will be mandatory for 21 SoEs, slated for divestment, to follow the guideline to be prepared by the committee, a top official in the MoF said. "A uniform method for asset revaluation of SoEs that would offload significant portions of their shares onto the stock market will help ensure their fair and exact values," the MoF official said. He said the SoEs concerned are now following their respective methods for assessing their respective assets. As a result, the SEC in the past had given its objection to such valuation and urged the finance ministry for formulating a uniform guideline for asset revaluation of the state enterprises, a high official said. The government is now of the view that offloading of the shares of state firms is of high importance considering the depth of capital market. The specific timeframe for offloading the SoE's share will soon be announced by the finance ministry, it is learnt. The government's latest move to offload shares of its own enterprises has created panic in the market. Earlier on February 11, the government set deadlines for 21 SoEs to offload their shares. The offloading was supposed to begin with Meghna Petroleum and Jamuna Oil Company by February 27 and end with Karnaphuli Paper Mills by December next. The government on February 13 announced the postponement of the decision to offload shares of 21 SoEs considering the market situation prevailing then.
The Ministry of Finance (MoF) has formed a five-member committee to formulate a uniform guideline for the purpose of revaluation of the assets of the state-owned enterprises (SoEs) concerned prior to the offloading a part of their stakes onto the capital market, official sources said. Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker will act as the convener of the committee, a top official of the ministry said. The committee has been given one month's time to complete its task. The specialized committee includes experts from both public and private sectors. It will be mandatory for 21 SoEs, slated for divestment, to follow the guideline to be prepared by the committee, a top official in the MoF said. "A uniform method for asset revaluation of SoEs that would offload significant portions of their shares onto the stock market will help ensure their fair and exact values," the MoF official said. He said the SoEs concerned are now following their respective methods for assessing their respective assets. As a result, the SEC in the past had given its objection to such valuation and urged the finance ministry for formulating a uniform guideline for asset revaluation of the state enterprises, a high official said. The government is now of the view that offloading of the shares of state firms is of high importance considering the depth of capital market. The specific timeframe for offloading the SoE's share will soon be announced by the finance ministry, it is learnt. The government's latest move to offload shares of its own enterprises has created panic in the market. Earlier on February 11, the government set deadlines for 21 SoEs to offload their shares. The offloading was supposed to begin with Meghna Petroleum and Jamuna Oil Company by February 27 and end with Karnaphuli Paper Mills by December next. The government on February 13 announced the postponement of the decision to offload shares of 21 SoEs considering the market situation prevailing then.