the MoF last week asked the power ministry to increase the shares of Padma Oil in the capital market through issuing one right share for one existing share at a face value of Tk. 10 each.
The government has dropped the plan to offload shares of three of its companies---Padma Oil, Atlas Bangladesh and Usmania Glass-- listed on the bourses as 49 per cent of their stakes are already held by private investors, a top official in the Ministry of Finance (MoF) said.
Prime Minister Sheikh Hasina has recently approved a proposal of the MoF on offloading certain portion of shares of nine public sector companies listed on the stock markets, keeping the government control over at least 51 per cent stake of each of the companies, the official said.
Besides, the Prime Minister also approved offloading up to 49 per cent stakes of the enterprises fully owned by the government.
Presently, the government holds 51 per cent stake in both Atlas and Usmania, while 50.35 per cent in Padma. Usmania was listed in 1987, Atlas in 1988 and Padma Oil in 1976.
"There is no scope to offload stakes of three listed state-owned enterprises (SoEs) as 49 per cent shares of these companies have been already sold to public through stock exchanges," a top finance official told the FE.
"We will not lose our majority share holding in already listed state firms or would- be listed ones," he added.
According to the latest decision of the government, another nine listed companies will undertake efforts to offload certain portion of government's stakes latest by this month.
The percentage of government's shares to be offloaded by the listed state firms are-Rupali Bank 24 per cent, Bangladesh Shipping Corporation Ltd 17.5 per cent, Power Grid 16.25 per cent, DESCO 15 per cent, Titas Gas 15 per cent, Meghna Petroleum 17 per cent, Jamuna Oil 17 per cent, National Tubes 1.94 per cent and Eastern Lubricants 17.30 per cent.
The finance ministry last week asked the companies concerned through their administrative ministries to implement the decision of the government within the stipulated timeframe.
"We will offload up to 49 per cent stakes of the government in nine SoEs in phases," another MoF official said.
However, a top official of one of the nine SoEs said the offloading would not be possible by November as it will take at least two to three months to complete the necessary formalities for going public. The formalities include approval from the board of directors and the controlling ministries, appointing issue managers and getting approval from Securities and Exchange Commission.
Meanwhile, the MoF last week asked the power ministry to increase the shares of Padma Oil in the capital market through issuing one right share for one existing share at a face value of Tk. 10 each.