Government to sale it's share of Mari Petroleum Company MPCL

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KARACHI: Government of Pakistan has initiated the process for sale of its 18.39 percent shareholding in Mari Petroleum Company (MPCL), a notice issued to the stock exchange by MPCL said on Thursday.

The sale would be through the joint venture partners, Fauji Foundation and Oil and Gas Development Company (OGDCL), through the stock market. In this regard, government has served an Intention to Sell notice to Fauji Foundation and OGDCL , who have the first right of refusal.

The offer price has been set at 7.5 percent discount on the closing market price of MPCL share on January 27, 2017 (Rs1,402/share).

The government will fetch about Rs26.28 billion by selling its remaining stake and the money will be used for meeting the budget deficit.

Fauji Foundation holds 40 percent shareholding; followed by 20 percent held by OGDCL , and 18.39 percent (20.27 million shares) held by the government of Pakistan. General public holds 21.61 percent.

For the quarter ended September 30, 2016, MPCL posted net profits of Rs1.765 billion and earnings per share (EPS) of Rs25.09.

Economy