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The Privatisation Commission (PC) has received Expressions of Interest (EoI), with statements of qualifications (SoQs) from 12 parties for acquiring 51 percent Pakistan State Oil (PSO) share, with management control.
The parties include Abraaj Capital, UAE; Abu Dhabi Group, UAE; Al-Ghurair Investment, UAE; Consortium of Aljomaih Group Saudi Arabia and Noor Financial Investment, Kuwait, and National Industries Group; Bakri International Energy Systems and Dabbagh Group Holding, Saudi Arabia; Goldman, Sachs (Asia) Finance; Vitol S.A (Switzerland) and MCB Bank; Fauji Foundation; Attock Group of Companies; and Kohinoor Group, led by Kohinoor Textiles.
The Privatisation Commission has termed the response as overwhelming in its handout issued here on Wednesday, which it said showed keen interest of reputable parties to acquire PSO shares along with management control, indicating the confidence in Pakistan's growing economy.
PSO is the largest oil marketing company in Pakistan and is engaged in the storage, distribution and marketing of petroleum products. Currently, PSO has approximately 3,700 retail outlets, spread across the country, with an addition of 209 leased retail outlets the 'New Vision' network expanded to 1,459 across the country.
For the year ending June 2006, sales revenue was in excess of Rs 352 billion ($5.8 billion) and after-tax profits amounted to Rs 7.5 billion ($123 million) PSO is listed on all three stock exchanges in Pakistan, and recipient of the Karachi Stock Exchange Top 25 Companies Award for 18 consecutive years.
PSO is rated as 'AAA' (Triple A) company by Pakistan Credit Rating Agency (Pacra).
It may be noted that Privatisation Commission had sought Expressions of Interest (EoIs) from interested parties for PSO sell-off. It resulted in the receipt of EoIs from various investors. The parties which submitted SOQs were allowed to conduct due diligence and provided the draft transaction documents.
The parties which submitted SoQ previously were not required to submit the fresh EOI. However, they were asked to update any outstanding information/by January 15.

Copyright Business Recorder, 2007

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