12 SoQs each received for PSMC and PAFL

02 Nov, 2005

The Privatisation Commission has received 12 statements of qualifications (SoQs) each from the potential investors for the privatisation of Pakistan Steel Mills Corporation (PSMC) and Pak American Fertilisers Limited (PAFL).
Earlier 19 parties had submitted expressions of interest (EoIs) in response to the advertisement placed by the Privatisation Commission for acquisition of 51-75 percent equity stakes of PSMC.
The SoQs document was issued to all the parties who had submitted EoIs. However, SoQs from 12 parties have been received.
The parties submitting SoQs include Al-Tuwairqi Group of Companies, Kingdom of Saudi Arabia with Arif Habib Group of Companies, Pakistan; Magnitogorsk Iron & Steel Works, Russia; Noor Financial Investment Company, Kuwait; Shanghai BaoSteel Group Corporation, China; Investment & Development Office of Government of Ras Al Khaimah, United Arab Emirates; International Mineral Resources, Switzerland; Aljomaih Holding Company, Kingdom of Saudi Arabia; International Industries Ltd, Karachi; Hassan Associates (Pvt) Ltd, Karachi with Med-Europe Commodities International s.a.l; Privilege Developers (Pvt) Ltd with SEKYRA as, Czechoslovakia; Aqeel Karim Dhedhi Securities (Pvt) Ltd, Karachi and Nishat Mills Limited, Lahore.
The process of pre-qualification had already been started. The privatisation process is proceeding on fast track as per the directive of Prime Minister Shaukat Aziz.
The Privatisation Commission has also received 12 SoQs for Pak American Fertilisers Limited (PAFL) and to acquire 90 percent equity stakes of PAFL from the interested parties.
In all 27 parties had submitted EoIs for the PAFL, which is an unquoted Public Limited Company, wholly owned subsidiary of National Fertiliser Corporation of Pakistan (Pvt) Limited.
PAFL was incorporated on December 15, 1959. The authorised, issued and paid-up share capital is 30 million ordinary shares of Rs 100 each. The Japan Bank of International Corporation (JBIC) financed the plant and their long-term loans outstanding as of June 30, 2005 are Rs 5,079,409,547.
The plant with a designed production capacity of 1,050 metric tonnes per day is located at Iskandarabad (Daukkhel), District Mianwali.
The principal line of production of the company is Urea fertiliser.
The parties, which submitted SoQs include Noor Financial Investment Company, Kuwait; Kohinoor Textile Mills and Associates, Lahore; Sapphire Textile Mills, Lahore; Descon Engineering Limited; Dawood Hercules Chemicals Ltd, Lahore; Yunus Brothers, Karachi; Jahangir Siddiqui Capital Markets Ltd, Karachi; Investment and Development Office of Government of Ras Al Khaimah; Associated Group, Lahore; Nishat (Chunian) Limited, Lahore; National Logistics Cell, Rawalpindi and Pak-Arab Fertilisers (Pvt) Ltd, Multan. The bidding for the project is scheduled in the first quarter of 2006.

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