The Pakistan Stock Exchange on Thursday said that three Chinese exchanges have come forward to bid for acquiring 40 percent stake in the Karachi-based exchange. The consortium of the Chinese bourses, subject to regulatory approval, will be offering Rs (Pakistani) 28 or about $0.27 per share.
The three bourses are China Financial Futures Exchange Company, Shanghai Stock Exchange and Shenzen Stock Exchange. Others in the race to acquire the stake include two Pakistani financial institutions, Pak-China investment firm and Habib Bank, Reuters reported.
"All I can say...is the Chinese consortium is the top bidder," Nadeem Naqvi, managing director of the stock exchange, was quoted as saying by the agency. According to him, a 40 percent stake roughly represents about 320 million shares. Thus, the value of the potential deal is estimated around PKR 8.96 billion (approximately $85 million).
Additionally, Naqvi mentioned that about 17 interested firms had so far submitted their expression of interest.
Commenting on the stake sale, Shehzad Chamdia, chairman of the Pakistan Stock Exchange divestment committee, said, "I think it will be a game changer for our capital markets," the Wall Street Journal reported.
Over the last few months, Pakistan has witnessed major investments from China.
This includes the China-Pakistan Economic Corridor and a multi-billion dollar infrastructure program. Pakistani Prime Minister Nawaz Sharif's government is trying to increase foreign investments in a bid to restore Pakistan's economy.
