PSMC revival: PC Board reviews pre-qualification criteria

ISLAMABAD: The Privatisation Commission (PC) Board has taken up on Friday issues pertaining to pre-qualification criteria of investors for Pakistan Steel Mills Corporation (PSMC) revival, auction result of Services International Hotel (SIH), and others.

Federal Minister for Privatisation Mohammed Mian Soomro chaired the meeting.

The revival of the Pakistan Steel Mills is one of the important objectives of the privatisation plan, as it is not working since 2015 hence, the government planned to bring foreign and domestic investors for the revival of the largest industrial corporation of Pakistan.

There have been consecutive meetings with the stakeholders and ministries to resolve the issues.

According to the transaction features approved by CCoP, the identified core operating assets would be transferred to the new subsidiary owned by PSMC named Steel Corp (Pvt) Ltd, and then the divestment of equity stakes of the subsidiary shall be 51-74 percent through the bidding process.

In view of the decision of the Cabinet Committee, the EOI for investors would be invited, for the purpose of pre-qualification of investors. The draft document containing eligibility criteria along with basis of disqualification for the potential investors was placed before the PC Board for deliberation and approval.

The PC Board approved the RSOQ and EOI documents.

PC steps up its efforts towards PSM revival

In the light of the decision of the Federal Cabinet, the Ministry of Privatisation will publish the advertisement, inviting the EOI after filing of scheme of arrangement (SOA) by the Pakistan Steel Mills (PSM) with the SECP.

The PC Board also recommended highest bidder, for Service International Hotel, i.e. Faisal Town (Pvt) Ltd along with the offered bid, which is higher than the reserved price.

The letter of acceptance to the successful bidder will be issued after seeking approval of the CCoP/Cabinet.

The PC Board was also apprised that maximum efforts were made by the financial advisors, who reached out maximum potential investors; but due to resource mobilisation, liquidity constraints, and overall macro-economic outlook in the backdrop of the Covid-19 pandemic, the response of the potential bidders appears lacklustre.

The financial advisors have also informed that serious investors are reluctant to deal in public assets/property for their own reasons.

The Ministry of Privatisation widely publicised open auction of the Services International Hotel (SIH) transactions in all the leading newspapers, and social and electronic media was also used for wider circulation to make the process open and transparent.

The federal minister said that we have come a long way, with a focused objective to revive the largest industrial unit of Pakistan, which could run in its best capacity and contribute to the national economy.

Copyright Business Recorder, 2021