Ibrahim Fibers Limited has defaulted on Pak-American Fertiliser Company Limited (PAFL) bid money payment, paving the way for Azgard-9/Jahangir Siddiqui, the runner-up, to match the highest offer to acquire its 90 percent stake with management control.
As per privatisation rules and procedure, the privatisation commission shall forfeit Rs 350 million earnest money of Ibrahim Fibers Limited deposited for the transaction.
Ibrahim Fibers Limited chairman Shaikh Mukhtar had met Prime Minister Shaukat Aziz and regretted going ahead with the deal.
Sources told Business Recorder on Friday, the privatisation commission would seek guidelines on PAFL in the board meeting on March 30, and after its approval would make the offer to the runner-up to match the highest bid.
An official, who confirmed that Ibrahim Fibers had failed to pay the first instalment of 25 percent said: "In the past, in default cases, the privatisation commission had made offer to the runner-up party, and it was going to follow the same routine in this case after getting approval from the board.
Ibrahim Fibers had offered Rs667 per share (total Rs 19.999 billion). Azgard-9 and Kohinoor Textile Mills Limited Group had offered Rs537 and Rs453 per share, respectively.
For Pak American Fertiliser Company Limited's (PAFL) 30 million shares, Ibrahim Fibers Limited was to pay 25 percent of the bid amount within two weeks after getting letter of acceptance (LoA) and the remaining 75 percent amount in 60 days.
Pak American Fertilisers Limited (PAFL) is located at Iskanderabad (Daudkhel), Mianwali district and produces 1050 tons urea per day. PAFL is a subsidiary of National Fertiliser Corporation of Pakistan (NFC). Japan Bank of International Co-operation (JBIC) provided loan for setting up the fertiliser plant. The plant was commissioned in 1999. The old plant was closed down in 1997 and a new Ammonia/Urea plant commenced commercial production in 1999.
The new plant is designed to produce 600 tons/day Ammonia and 1,050 tons/day urea using natural gas as feed and fuel. Both plants have been designed by TOYO Engineering, Japan.
Ammonia plant is under licence from Kellogg International, USA, while urea plant TEC's. Designing of plants is done on modern lines and equipped with latest technology.
The company possesses over 11,481 kanals land, comprising 6,432 kanals for factory, 2,818 kanals for housing colony and 2,230 kanals for experimental farm.
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