"The abridged offer for sale document appeared in the media on February 06 has not taken into account the said concerns. The detailed offer for sale document has not been received by us," Hamid said in the letter on February 16.
While backing the agreement between the staff, Wapda, CBA and GoP, the Wapda chief said that according to the agreement signed on June 27, 1996, employees were eligible for buying shares of Kapco out of the offloaded tranche.
"The issue has been brought to the Commission''''s notice on several occasions with the request that during Initial Public Offer (IPO), all the legal/contractual obligations must be fulfilled in true letter and spirit. The CBA, in a recent letter to the President, has expressed concern over the violation of agreement," Wapda chief said.
He said that offer for sale document may be amended to fulfil contractual obligations. "The Commission/GoP may reconsider to allocate 10 percent of shares being offloaded to Wapda employees who opted and joined the company after privatisation," he maintained.
On December 31, the Cabinet Committee on Privatisation (CCoP) was informed that the Initial Public Offer of Kapco with an offer for sale of 10 percent shares including 1percent for the employees of Kapco with green-shoe option of another 10 percent shares including 1 percent for the employees had been approved by the committee on May 07,2004.
He lead manager in his presentation to PC Board had suggested share price ranged between Rs 15.50 and Rs 38.80 per share under various assumptions/scenarios, sources said.
According to these sources, the PC board noted that the nature of Kapco business presented very little growth opportunity, thereby limiting the prospective investors for capital gains. Further common investors would compare the share price of Kapco with Hubco.
When contacted for comments on the letter of the Wapda chairman, PC spokesman said that the Commission had already announced that 2 percent of 20 percent shares were being allocated to the employees.