Move to offload more SoEs\\\' shares hits snag

Rezaul Karim | Published: June 25, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The government's move to offload shares of more state-owned enterprises (SoEs) has hardly made any progress, mainly due to procedural complexities and dillydallying of the authorities concerned despite repeated reminders from the top levels, officials said.
"We are reminding the ministries concerned to expedite the process, and bring the SoEs, which are yet to offload their shares, in the capital market as early as possible," a high official of the Bank and Financial Institutions Division (BFID) told the FE.
However, another official of BFID said, "The Ministry of Finance (MoF) is now following a go-slow policy in offloading the SoEs' shares, considering the existing situation in the capital market."
Officials said BFID took a decision to hold a yearly meeting regarding floatation of the SoEs' shares. Subsequently, a meeting was held in May 2014 to devise a timeÂbound action plan for it.
Then the Ministry of Finance (MoF) in June asked the SoEs to expedite the share-offloading process. But there was no visible progress, they said.
Authorities of the SoEs concerned missed their respective deadlines several times, which they pledged earlier to the government for floating their shares, a senior ICB official close to the initiative told the FE.
Possibility of offloading shares of rest of the SoEs is gradually fading away due to some procedural complexities of the authorities concerned. As a result, the government could not float the SoEs' shares in the capital market despite repeated suggestions from experts and investors.
Many of the SoEs are presently unfit for offloading shares since they are incurring loss. According to the initial public offering (IPO) policy, no loss-making company can be listed in the capital market, he added.
The government sat with the state-run power companies in May to discuss about their share offloading.
BFID Secretary Dr. M Aslam Alam told the FE on Tuesday a check-list has already been sent to the SoEs to inform the government of their financial position, including progress made so far in offloading shares. But many of the SoEs could not fulfill the conditions of listing.
"The officials of BFID are frequently corresponding with the SoEs to complete their preparation for offloading shares. But there is no significant progress yet," he added.
Presently, at least 15 SoEs are supposed to offload their stakes in the capital market. The companies include - Bakhrabad Gas Transmission and Distribution Company, Gas Transmission Company, Jalalabad Gas Transmission and Distribution Company, Pashchimanchal Gas Company, Sylhet Gas Fields Company, Bangladesh Gas Fields, Rupantarita Prakritik Gas Company Limited (RPGCL), Teletalk Bangladesh, Bangladesh Telecommunications Company Ltd (BTCL), Bangladesh Cable Industries Ltd, and Bangladesh Telephone Shilpa Sangstha etc.
Presently, Essential Drugs Company Limited (EDCL) is in the final stage of offloading its shares in the market, ICB officials said.
Titas Gas Transmission and Distribution Company Ltd, Dhaka Electric Supply Company Ltd and Power Grid Company of Bangladesh Ltd have offloaded shares once, and are supposed to offload more in future. Ruposhi Bangla Hotel (Hotel Sheraton) remains suspended due to its branding.
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