Govt may offload its shares in power firms

The government has initiated a fresh move to offload its shares in state-owned power companies on to the stockmarket. The Power Division under the power, energy and mineral resources ministry will sit with key stakeholders today to discuss the issue.

“The purpose of the meeting is to discuss how funds can be raised from the capital market and invest the money in different projects of the companies under the Power Division,” an official of the Power Division said, asking not to be named.

How the government can offload more of its shares in two listed power companies owned by the state will also be discussed in the meeting, he said.

Representatives from Bangladesh Securities and Exchange Commission, Investment Corporation of Bangladesh, Dhaka Stock Exchange and the companies under the Power Division will attend the meeting.

The two state-owned power companies that are listed on the stockmarket are Dhaka Electric Supply Company (Desco) and Power Grid Company of Bangladesh (PGCB).

The government in 2006 offloaded 25 percent of its shares in Desco and 23.75 percent of its shares in PGCB through direct listing.

Some other companies under the Power Division include Dhaka Power Distribution Company, West Zone Power Distribution Company, Electricity Generation Company of Bangladesh, North-West Power Generation Company, and Rural Power Company.

On the Dhaka bourse yesterday, each Desco share was traded between Tk 66.90 and Tk 69 before closing at Tk 67.80, while a PGCB share was traded between Tk 34.10 and Tk 35 before finishing at Tk 34.20.

Titas Gas Transmission and Distribution Company was the last state-owned company that was listed on the stockmarket, in 2008. After that, the government in January 2010 had selected 26 state-owned companies and instructed them to offload shares in the next six months.