Re: Karachi Electric Supply Corp/some Questions.
*"Why were shares sold at the rate Rs1.80 a share when the same were being sold at the Stock Exchange at more than Rs8 a share? " *
Because the gov't had a preferred holding in the company and probably via some structured transaction transfered the ownership of its holding on to the Saudi Group.
"Why was the deal not cancelled and deposit money of Rs100 million confiscated when the buyer had failed to pay Rs20.04 billion within 15 days of acceptance? "
the deal was probably contingent on financing and i would assume that once you have gone through the pains of doing a deal..it is not easy to go back. A lot of monies has been spent on bankers, lawyers, acct's to get the deal done. These things happen all the time. Probably some issue with the Saudi's funders.
Why was a senior officer sent to Saudi Arabia to ask the buyer company to deposit Rs20.04 billion long after the commitment date had expired? "
Has to be something more than just a clerical oversight.
The question you should be asking is "Why is the army personnel better than a banker in doing this?" WHy the fk is the army involved in the transaction..shouldn't they be worried about fighting the jihadis, fighting Indians, training for armageddon...what the fk are they doing in the middle of an investment banking transaction?"
^ this is the biggest tragedy of the letter...