BIDDING FOR THATTA CEMENT COMPANY ON NOVEMBER 5, 2003

Islamabad, November 04, 2003

The second round of open bidding for Thatta Cement Company Ltd will be held on November 5, 2003 (Wednesday) at 1030 hrs at Privatisation Commission's auditorium Islamabad among the parties who have not withdrawn their earnest money. Cabinet Committee on Privatisation (CCOP) has directed Privatisation Commission to hold this round of bidding with Rs. 9.05 per share as floor price, providing a level playing field to all the eligible players.

Earlier, open Bidding for TCCL was held on August 28, 2003 and Four parties who submitted earnest money worth Rs. 50 million each took part in the open bidding process for acquiring the minimum of 90 % State Cement Corporation of Pakistan's shareholding (71,797,050 shares) in Thatta Cement Company Limited. These included Al-Abbas Group of Companies, Karachi, Bestway Cement Limited, Islamabad, Haji Saifullah & Group, Islamabad and Star Cotton Corporation (Pvt) Ltd, Karachi. The highest bid/ offer received Rs. 6. 70 per share was offered by Haji Saifullah, while the offer of Rs. 6.60 given by Al-Abbas Group of Companies got the second position and Star Cotton Corporation remained third with an offer of Rs. 6.30 per share. However, PC had asked the highest bidder to raise their bid to Rs. 9 per share within a period of three days failing which Al-Abbas Group, the second highest bidder matched the required price as per laid down procedure. PC had received seven Expression of Interest from interested parties for the purchase of minimum of 90 % shares of Thatta Cement Company Limited (TCCL) on 'as is where is' basis. The first bidding for TCCL was held on September 7, 2002 but the successful bidder defaulted and failed to deposit the bid amount as per sale schedule.

PC had received seven Expression of Interest from interested parties for the purchase of minimum of 90 % shares of Thatta Cement Company Limited (TCCL) on 'as is where is' basis. Privatisation Commission (PC) had invited Expression of Interest from prospective investors, business houses in May 2003.

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 Resisting 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).