Chinese-led consortium top bidder for 40% stake in PSX

A Chinese-led consortium on Thursday offered approximately $85 million for acquiring 40 percent stake of the Pakistan Stock Exchange (PSX).

PSX Divestment Committee received bids for 40% of its shares and announced the same in the presence of representatives of all qualified bidders.

The bid submitted by Chinese Consortium @ Rs. 28 per share emerged as the highest and acceptable under the relevant regulations. The said Consortium comprises three Chinese Exchanges: China Financial Futures Exchange Company Limited (being the lead bidder), Shanghai Stock Exchange, Shenzhen Stock Exchange and two local Financial Institutions: Pak China Investment Company Limited and Habib Bank Limited.

The sale has enhanced the PSX value to US$213mn. PSX’s original book value was US$76mn. Upon formal approval from the Securities and Exchange Commission of Pakistan (SECP), the Divestment Committee would issue “Letter of Acceptance” to the above Consortium.

Shahzad Chamdia, Chairman Divestment Committee while commenting on the sale said this is very positive news for PSX as it would bring technological improvement, cross border listing, improved transparency, access to other markets and new products. He added that the deal would also open new avenues for the bidders.                       

Pakistan's stock exchange has been one of Asia's best performing for several years and was recently approved to be restored to the MSCI Emerging Markets Index, giving it a wider range of potential investors than as a Frontier Market.

The index has since gained 21 percent in terms of points, closing at 46,699.78 on Thursday.