Chinese consortium wins bid for 40% stake in Pakistan Stock Exchange

[Indika]

Good for Chinese company, neutral for Pakistan

Its bad in the long run. Even a cent of tax on every transaction will make more money.

 

[Mr.Nair]

It looks like that they sold the golden goose to chinese in a very cheap price, don't know why !

The consortium’s winning offer, subject to regulatory approval, of 28 rupees ($0.27) per share values the stake at $85 million, and the exchange at $213.7 million.

http://www.wsj.com/articles/pakista...onsortium-has-top-bid-for-40-stake-1482433211

The winner is always chinese.....

@Doordie @LA se Karachi @syed zia Hassan @Dean Winchester @Salman Zahidi @Zarvan @Muhammad Omar

 

[Dean Winchester]

It looks like that they sold the golden goose to chinese in a very cheap price, don't know why !

The consortium’s winning offer, subject to regulatory approval, of 28 rupees ($0.27) per share values the stake at $85 million, and the exchange at $213.7 million.

http://www.wsj.com/articles/pakista...onsortium-has-top-bid-for-40-stake-1482433211

The winner is always chinese.....

@Doordie @LA se Karachi @syed zia Hassan @Dean Winchester @Salman Zahidi @Zarvan @Muhammad Omar

21st century version of East India Company.

 

[LA se Karachi]

Pakistan Strategy

Ni Hao PSX

· As per media reports a consortium of China Financial Futures Exchange, Shanghai Stock Exchange, Shenzhen Stock Exchange, Pak China Investment Company Limited and Pakistan’s Habib Bank Limited were announced as the highest bidders for the PSX strategic sale yesterday, acquiring a 40% stake (320mn shares) for a consideration of USD85mn (i.e. PKR28/sh) along with management control. This is likely to be followed by a further 20% divestment by way of an IPO within the next 12 months.

· This divestment is not only a landmark transaction in the bourse’s 70 years history but a historic deal between the two great nations – China and Pakistan and will result in a game-changer for the further development of Pakistan’s capital markets. A number of positives for PSX include i) influx of liquidity emanating from the sale i.e. USD 85mn, majority of which could potentially flow to the local bourse through TREC holders, which would possibly be further augmented by a subsequent IPO of 20%, ii) cross border investments taking cues from the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, that could allow investors to trade across borders, iii) introduction of new products that will increase the depth of the market; including derivatives (options & futures), fixed income and ETFs, iv) introduction of new technology that will increase the investor base, especially retail investors, and v) lending further visibility and transparency for foreign investors.




Mubashir Anis Silat, CFA

T +92 21 111 354 947, Ext.3144, E: manis@elixirsec.com

I'd like to get your thoughts on this. Was it necessary to sell 40% of the PSX?

 

[Mr.Nair]

21st century version of East India Company.

No wonder why chinese supporting non state actors.There are 100's of video by pakistani experts in pakistani media itself telling that chinese are exploiting pakistan in the name of friendship.

 

[RIP Pak LAW]

It looks like that they sold the golden goose to chinese in a very cheap price, don't know why !

The consortium’s winning offer, subject to regulatory approval, of 28 rupees ($0.27) per share values the stake at $85 million, and the exchange at $213.7 million.

http://www.wsj.com/articles/pakista...onsortium-has-top-bid-for-40-stake-1482433211

The winner is always chinese.....

@Doordie @LA se Karachi @syed zia Hassan @Dean Winchester @Salman Zahidi @Zarvan @Muhammad Omar

They were the highest bidder for now. Perhaps may be some one having deep insides of finance sector can explain it better.

 

[dadeechi]

Congratulations! to China.

 

[Mr.Nair]

I'd like to get your thoughts on this. Was it necessary to sell 40% of the PSX?

That's also my thought, why some one have to sell when the stock exchange performing well....

 

[dadeechi]

That's also my thought, why some one have to sell when the stock exchange performing well....

One always divests in good times. No one invests in NPAs.

 

[LeGenD]

So our leaders are willing to sell entire Pakistan to China now?

@maximuswarrior

This is how we are supposed to function?

A fine example of when a nation looses its footing, identity and mindset.

 

[Mr.Nair]

One always divests in good times. Non one invests in NPAs.

But why they sold in a very very cheap price !

$84 million dollar really !!!!

 

[AZADPAKISTAN2009]

Well considering it was auction these things do happen in an auction , the government should have started the auction with a fair price "requirement" to bid above figure of 1-2 billion as starting price

And should have analysed the price of Stock exchanges world wide before starting the bidding process.

Or at least waited till 2020 for an auction

But one thing is for sure with Chinese expertise on board , the Stock exchange would be World standard

 

[LeGenD]

Pakistan should do China a favor: become its province.

Why bother with such formalities?

 

[xyxmt]

Its actually good, it will brings better management having Chinese stakes in it, less chances of stock market manipulation by Pakistani stock brokers as was done by non other than Mr. Shaukat Aziz.

 

[AZADPAKISTAN2009]

All the best to the new management partners in stock exchange considering that they won fair and square on open bidding process we can now look forward to new and improved stock exchange to be of world standard