Another Victory : PPL Privatization

[Zafra]

Re: Another Victory : PPL Privatization

@Silaaj

Desert Bird specializes in copy-paste jobs. He doesnt seem to care much for logic.

And about the original post, both UBL, and now PPL have been sold below market prices. With plenty of liquidity in the markets, its a major surprise (or maybe not) that PMLN has chosen to sell out these prized possessions for cheaper than what they are worth in the markets.
Why have they been sold for less? PMLN’s argument would probably be that block sales are always done at discounted prices, because of their sheer volume. But thats quite hypocritical, as on the other hand, the same PMLN is shouting out at the top of its lungs as to how the market capitalization has doubled in the recent past.
So the question remains. Why have PPL and UBL been sold at under-market prices? Were there any familiar faces in the buyer’s block, and was this an attempt to facilitate those friendly faces?

Its simple. There is no confidence in Pakistan and its political set up. Its not that hard. Companies that need to build capital quickly sell their shares at a lower value so that the investor can make a quick profit and stay on based on the idea that they have made a profit and will make more.

Its standard investment economic thinking.

If you sell stocks at current value few will buy because they don’t see any profit realization in the near future. If you sell stakes at a lower price, they realize a profit right off the bat.