A signing ceremony is being held on Monday here for the sale and purchase agreement for 75 percent stakes (1,290,487,275 ordinary shares) of Pakistan Steel Mills Corporation (PSMC).
Privatisation secretary Shaikh Ikramullah and authorised representatives of the consortium of Magnitogorsk Iron & Steel Works (Russia), Tuwairqi Steel Mills (Saudi Arabia) and Arif Habib Securities will sign the agreement.
The commission has received Rs 5.420 billion, 25 percent of bid money, on April 20 after issuance of Letter of Acceptance (LoA). The consortium will pay the remaining amount in 60 days.
The highest offer of Rs16.80 per share (Rs 21.680 billion) was offered by the consortium of Magnitogorsk Iron & Steel Work (Russia), Tuwairqi Steel Mills (Saudi Arabia) and Arif Habib Securities during the two rounds of bidding, which was held in front of a large number of representatives of print and electronic media. Bids were opened and read out by two senior journalists during the first round.
The cabinet committee on privatisation (CCoP) had authorised the privatisation commission to issue Letter of Acceptance (LoA) to the successful bidder.
The bidding determined the value of Pakistan Steel Mills 100 percent assets at $482 million. Out of 19,000 acres of the land of PSMC, around 14,500 acres worth about $800 million has been separated from the transaction, which will be used by the government for other appropriate project.
An agreement has been reached with PSM employees and they have been offered a package, which has never been given to employees of any other entity.