PC Receives Rs. 696.431 Million Offer for Thatta Cement Company Ltd In Open Bidding

Islamabad, September 7, 2002

Privatisation Commission received a highest offer of Rs. 696.431 million at the rate of Rs. 9.70 per share for the sale of 71.79 million shares i.e. 90 % shares of Thatta Cement Company Limited (TCCL) on 'as is where is' basis, including Rs. 383 million loan liabilities and 50 % of GHS/VHS to be paid to the employees by the buyer which is around Rs. 45 million. This makes the total above Rupees one billion. Iqbal Alimohammad & Consortium gave the highest offer in an open bidding held here today. Mr. Muhammad Afzal Khan, Member PC Board who is also the Chairman OGDCL, supervised the bidding process. The highest bidder has been asked to improve their bid within the next three days for the consideration and recommendations of PC Board and subsequent decision by the Cabinet Committee on Privatisation. 10 % shares i.e. 7.79 million shares of the company will be offered to the employees and in case they show no interest then the same will be offered to the highest bidder on the bid rate, which will further raise the proceeds. The parties, which took part in the bidding, were 1. Lucky Cement Limited, 2. Kohat Cement Company Limited, 3. Iqbal Alimohammad & Consortium and 4. Vijaint Kumar Chawla, Chawla International. Privatisation Commission (PC) had invited Expression of Interest from prospective investors, business houses etc in July 2002.

A pre-bid conference was organized on September 4, 2002 (Wednesday) for responding to the queries of the bidders and for a better understanding of the process and the transaction.  Thatta Cement Company Ltd was incorporated in 1980 as a limited company under Companies Ordinance 1913 (now
Companies Ordinance 1984) and is a wholly owned subsidiary of the State Cement Corporation of Pakistan (Pvt) Limited (SCCP). The Unit is located at 115 km in the North East of Karachi at Makli Ghulamullah Road, District Thatta. The plant is based on dry technology and has capacity of 1000 tonnes per day production. The entire plant and machinery was imported from Mitsubishi Corporation Japan while the slag-grinding mill has been supplied by HMC. The plant started commercial production in December 1982 and is fully operative. Its main products include Ordinary Portland Cement, Slag Cement and Sulphate Resistant Cement while Lime Stone, Clay/Shale, Iron Ore, Gypsum and Slag are the inputs/ raw material.The unit is located on 236 acres of land consisting of factory, officer and workers colonies  complete with all facilities along with 4725 acres of mining lease land (Quarry).