PC rebuffs rumours about divestment of OGDCL shares at discounted rate

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ISLAMABAD: The Privatization Commission (PC) on Wednesday refuted the rumours about divestment of the Oil Gas Development Company Limited (OGDCL) shares at a discounted rate.

Through a letter to the Pakistan Stock Exchange (PSX) managing director, PC informed the OGDCL stakeholders that the appointment of financial advisers for the purpose of divestment was in process.

“After the appointment, the advisers would carry out comprehensive due diligence and later suggest a suitable transaction structure for the consideration of the government,” the letter stated.  “There is absolutely no consideration to offer OGDCL shares either at a discount or on a historical average. Any rumours pertaining to the transaction also or discounted divestment price are strongly refuted.”

Up to 7pc OGDCL shares will be offered at a value that is best reflective of the fundamentals of OGDCL including its strong financials, the letter read.

It is pertinent to mention that rumours dominated the stock market on Wednesday as the government had finalized the privatization of OGDCL, besides finalising a consortium of OGDCL advisers. Initially, its share price went down by almost 5pc.

Rumours were rife in the market that the government would sell OGDCL shares lower than the market price, at around 125 per share, despite the fact the company’s market consensus average fair value was 190 per share.

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