TRANSPARENCY TO BE ENSURED IN PRIVATIZATION: ABDUL ALEEM KHAN
222nd MEETING OF PRIVATIZATION COMMISSION BOARD HEADED BY FED. MINISTER
Islamabad : In the 222nd meeting of Privatization Commission Board chaired by Federal Minister for Privatization, Board of Investment and Communications Abdul Aleem Khan in which important decisions regarding the ongoing process of privatization of various Government Institutions and financial & technical aspects were approved. In the Board meeting, decisions on appointment of Financial Advisors for PIA, DISCOs, Roosevelt Hotel in New York and other decisions were unanimously approved by PCB, as well.
Federal Minister for Privatization Abdul Aleem Khan said that the national exchequer should be saved from the burden by privatizing loss-making institutions. He observed that privatization is very much important sector in which transparency will be ensured at all costs. Federal Minister Abdul Aleem Khan further said that we have to make better, solid and lasting decisions in the wider national interest. He said that any institution that meet criteria and follow the rules and regulations must be given chance to take part in the privatization process. Federal Minister Abdul Aleem Khan expressed his satisfaction over the performance of the Privatization Commission Board and said that the inclusion of Financial Advisors from world-class firms is a good omen.
Privatization Commission Board approved the selection of six (06) companies/firms as prequalified Financial Advisors for the Privatization Program. The PC Board was also presented with the Transaction Structure Report on the Roosevelt Hotel Corporation (RHC), New York by Jones Lang LaSalle Americas, Inc (JLL), the Financial Advisor for the transaction. The Board recommended “Joint Venture” as the best suited transaction structure for the Roosevelt Hotel in line with the Transaction Structure Report submitted by JLL. The six companies/firms approved for the panel of prequalified Financial Advisors include Citigroup Global Markets Ltd. UK, J.P. Morgan, Alvarez & Marsal, UAE, EY Consulting LLC Dubai, PWC-A.F. Ferguson & Co. and BDO Ebrahim& Co., Pakistan. These prequalification of Financial Advisors will enable the Privatization Commission to timely engage Financial Advisors for various upcoming privatization transactions.
The consortium of Jones Lang LaSalle Americas, Inc (JLL) was appointed as the Financial Advisory Consortium (FAC) for Roosevelt Hotel transaction on 28th November, 2023 and the Financial Services Agreement (FASA) was signed on 2nd February, 2024. As part of its deliverables the FAC was required to submit a Transaction Structure Report suggesting alternate transaction structure options for the mixed use development of the Roosevelt Hotel. The report considered and evaluated the options of outright sale, joint venture development and long term lease. JLL based on the analysis presented in the Transaction Structure Report and its experience of New York Real Estate Market recommended “Joint Venture” as the most suitable Transaction Structure for maximizing the expected proceeds and value to the Government of Pakistan. The Federal Minister appreciated the efforts of JLL on compilation of a detailed transaction structure report and expressed the hope that the Government will be able to get the best deal for the Roosevelt Hotel Transaction.