Azgard-9-led consortium on Saturday deposited Rs 11.886 billion (inclusive of Rs 153.975 million interest) as remaining bid money for Pak American Fertiliser Limited (PAFL) with the Privatisation Commission, which was followed by signing of share-purchase agreement (SPA) between the two parties.
The privatisation commission secretary, and Ahmed Sheikh and Ali Siddiqui, the representative of the consortium, signed the SPA. Azgard-9-led consortium was offered PAFL after default of its highest bidder, Ibrahim Fibres. The consortium, second bidder, responded positively to the privatisation commission's move and deposited Rs 4.2 billion as its first instalment.
The consortium had some problem in arranging the remaining bid money of Rs 11.886 billion and it approached the privatisation commission to seek extension in deadline for payment till July 15.
The commission granted the extension and allowed the consortium to pay before expiring the extended period. The CCoP also endorsed the privatisation commission's strategy. Earlier, Ibrahim Fibres' had defaulted on payment of bid money, paving way for Azgard-9-led consortium to buy the PAFL on offered Rs 16.11 billion.
Addressing the signing ceremony, Zahid Hamid said successful privatisation of PAFL was a reflection of government's continued commitment to the privatisation policy.
He said it was the first transaction that successfully completed in 2006-07. The minister added the privatisation commission would vigorously pursue and implement the privatisation programme with utmost transparency in an open, fair and competitive manner to maximise proceeds of national assets.
Ahmed Sheikh on behalf of the consortium said they would make fresh investment for expansion of plant capacity and to increase production in order to bridge shortfall in the demand and supply of urea and at the same time generate employment opportunities.
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