Several Companies to Undergo Privatization - Good or Bad?

[RoadRunner401]

Yes, Majority shareholder is Govt.

Please!!!!!!!!!!!!!!!!!

The Karachi Electric Supply Company (KESC), incorporated in 1913, is one of the few vertically-integrated power utilities remaining globally. Throughout the company’s nearly 100-year history, KESC has undergone a variety of management changes, including privatization in 2005.KESC manages the generation, transmission and distribution of electricity to Karachi—one of the top ten most populous cities in the world with 18 million inhabitants. KESC supplies electricity to
2.3 million consumers that fall under a network spanning 6,000 square kilometers. It has a workforce of 18,000 employees and is listed on the Karachi, Lahore and Islamabad Stock Exchanges.

In March 2008, having been familiar with the privatization case for KESC and knowing the history of the asset—along with the resulting challenges and opportunities—Abraaj was presented with an opening to take over management.Incumbent shareholders noted Abraaj’s trackrecord of business transformation through its acquisitions and exits across the region since 2002.

Following the due diligence process, completed in May 2008, Abraaj Capital agreed to invest US$361 million for a 50% stake in KESC Power—the holding company that owned 71.5% of KESC—with the aim of finally realizing the power company’s goal of implementing a turnaround and growth plan. Existing shareholders retained equity in the business, with
Abraaj assuming full management control

Following the departure of KESC’s CEO in 2008, existing shareholders approached Abraaj to invest in KESC Power and take over 100% management.

 

[Sipahi]

Please!!!!!!!!!!!!!!!!!

The Karachi Electric Supply Company (KESC), incorporated in 1913, is one of the few vertically-integrated power utilities remaining globally. Throughout the company’s nearly 100-year history, KESC has undergone a variety of management changes, including privatization in 2005.KESC manages the generation, transmission and distribution of electricity to Karachi—one of the top ten most populous cities in the world with 18 million inhabitants. KESC supplies electricity to
2.3 million consumers that fall under a network spanning 6,000 square kilometers. It has a workforce of 18,000 employees and is listed on the Karachi, Lahore and Islamabad Stock Exchanges.

In March 2008, having been familiar with the privatization case for KESC and knowing the history of the asset—along with the resulting challenges and opportunities—Abraaj was presented with an opening to take over management.Incumbent shareholders noted Abraaj’s trackrecord of business transformation through its acquisitions and exits across the region since 2002.

Following the due diligence process, completed in May 2008, Abraaj Capital agreed to invest US$361 million for a 50% stake in KESC Power—the holding company that owned 71.5% of KESC—with the aim of finally realizing the power company’s goal of implementing a turnaround and growth plan. Existing shareholders retained equity in the business, with
Abraaj assuming full management control

Following the departure of KESC’s CEO in 2008, existing shareholders approached Abraaj to invest in KESC Power and take over 100% management.

my bad... I wasnt aware of this development

 

[AZADPAKISTAN2009]

Privatization Steps:

-1 Economic sanctions or hurdles are placed to reduce trade for country intentionally
0- Local Banks are made weak so they don't finance local initiatives
1- Keep telling governments that they need loan
2- Sell them loans
3- Devalue the currency of nation so its assets loose value (Get cheaper)
4- Sell more loans
5- Collect High interest , and modify loan taker's inner laws to allow more economic abuse
6 - Devalue the currency more for nation (Stuff gets cheaper to buy if you are outsider)
7- Sell more loans (For useless things like road or dirt wall or paint job never for energy or economic booster projects)
8- Devalue the currency some more , so assets loose value (Get Cheaper)
9 - PRIVATIZATION
10- Group of investors from outside , move in with pennies which now value like thousands due to loans
11- Purchase of expensive property , industries , energy resources in country at CHEAP CHEAP CHEAP rate
12 - Hike the Prices of water, energy , food once resources are purchased
13- Country which owned the assets now its citizens become "Purchasers" to the outsiders , they need to purchase goods coming from the resources of its own country but hey have to pay to outsiders


We are at number 8 and talks of number 9 in list



Explanation #2: Story from Beneficiaries side (Foreign group's country) prespective

International Organizations, call them xyz tells citizens of rich country (USA, Canada, UK etc )
, look buy our stocks !!! and over time we will buy Oil Wells, Gold mines , Gas mines , Minerals and water resources around the country and internationally. These groups form an IPO in stock exchange , don't put a penny of their own. The stock purchasers buy stock for that company

So they get money collected from the investors "this is their market capital"

Now they put policy makers in Governments (As a group) so that Organization like IMF get $$$$ donated which they can donate to poor countries .

Now IMF - indirectly engages poor countries to Take Loans, tells them its must or we will down grade your economic outlook

And once the Money in country falls after taking loans over 5-10 years the "International" Group moves in forms alliances with local partner or not and take over assets, under privitization

Back home, they announce "Hey Look, we purchased a Gold Mine in Nigeria or Pakistan"
We will extract 20 Billion dollar worth of goods over 14 years , and as a result the Groups STOCK value goes up the roof!!!!





YE HAI TAJAERBEKAR TEAM! Ka Purpose !!!!