Transfer of Remaining 10% Shares of Paksaudi Fertilizers Raises Proceeds To Rs. 8.15 Billion 

Islamabad, September 19, 2002

Privatisation Commission transferred the remaining 10 % shares (6 million) of Paksaudi Fertilizers Limited to the Consortium led by Fauji Fertilizer Company Limited here today at the rate of Rs. 135. 85 per share, the highest offer received for this transaction on March 9, 2002.

In line with the conditions of the bid documents the remaining 10 % NFC  shares were offered to those workers of the company who did not opt for the Golden Handshake Scheme but no response from the workers was received by the due date. As per condition of the bid documents the successful bidder was bound to pick up the remaining shares at the offer price.

In a ceremony to transfer these remaining 10 % (6 million) shares to the  Consortium led by Fauji Fertilizer Company Limited on payment of Rs. 815.1 million the Federal Minister for Privatisation Mr. Altaf M. Saleem and the representatives of FFCL, NFC and Ministry of Industry & Production were also present. A representative of FFCL presented a cheque amounting to Rs. 815.1 million to the Secretary Privatisation Commission Mr. Ahmad Waqar who gave cheques worth Rs. 122 million as Golden Handshake for 416 workers being disbursed to them tomorrow by the new owners.

FFCL had already deposited Rs. 7. 3359 billion for 90 % (54 million) shares of the company by due date. Now the total proceeds for this transaction has come to Rs. 8.15 billion for 100 % (60 million) shares, which were fully owned by National Fertiliser Limited (NFC).

Paksaudi Fertilizers Limited (PSFL) is a public limited company, incorporated in 1975, under the Companies Ordinance, 1984 to reduce the import of fertilizers and to promote the fertilizer industry in Pakistan. The major financing for this project was provided by Saudi government, and in appreciation of this contribution, the Project was named as Paksaudi  Fertilizers Limited. The plant started its trial production in April 1980 and commercial production started in October 1980.

The Head Office of the company and the plant is situated 2.5 kilometer North  east of Mirpur Mathelo, Sindh at a distance of 104 kilometer from Sukkur. The total land area is about 566.2 acres. PSFL is one of the five urea-manufacturing plants, which are presently operating in the public sector. PSFL is a wholly owned subsidiary of National Fertilizers  Corporation (NFC).

At present there are nine fertilizers producing units in Pakistan. Five of these units are state owned and are controlled by the National Fertilizer Corporation (NFC). The remaining four units are managed by the private sector. The state owned units are Hazara Phosphate Fertilizer (Pvt.)
Limited, Lyallpur Chemical & Fertilizer Limited, Pak Arab Fertilizer Limited, Paksaudi Fertilizers Limited and Pak American Fertilizers Limited. The units in the private sector are Engro Chemicals Pakistan Limited, Dawood Hercules Chemicals Limited, Fauji Fertilizer Company Limited and FFC-Jordan Fertilizer Company Limited.