PSX receives Rs 8.96b from sale of 40pc equity stake

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The Pakistan Stock Exchange (PSX) has received Rs8.96 billion from the Chinese consortium as a result of the sale of 40 pc equity stake in the PSX. This was informed in a meeting held on Friday to ‘discuss the critical matters in relation to divestment of 40pc equity stake to the Chinese consortium’.

Shahzad Chamdia, chairman of the stock market’s divestment committee,is reported to have said that the sales proceeds from the transaction have been received in the Escrow account at the State Bank of Pakistan (SBP) and transferred to the PSX’s designated account.

The 40pc stake in the PSX will translate into 320 million shares of the PSX .The sale and purchase agreement was signed on Jan 21 in the presence of Finance Minister Ishaq Dar and Chinese Ambassador to Pakistan Sun Weidong.

Most of the 200 PSX ‘shareholder brokers’ who are the original owners of the exchange will receive Rs40m as their share as a result of the transaction.

The consortium comprises Chinese Financial Futures Exchange Company Ltd (lead bidders), Shanghai Stock Exchange, Shenzhen Stock Exchange and two local partners Pak-China Investment Company and Habib Bank Ltd.

With 40pc shares of the PSX already distributed among the brokers and another 40pc sold to the Chinese consortium, the remaining 20pc stock is to be offered to the general public through an initial public offering (IPO). Although no date for the IPO has been specified, Mr Chamdia said the entire divestment transaction is expected to be finalized by June 2017.