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Open Bidding for Thatta Cement companies organized by Privatisation
Commission (PC) under the supervision of Mr. Saquib Shirazi, a senior member
of Privatisation Commission Board, was held here today in the presence of
other members of PC Board and a large number of the representatives of print
and electronic media. The Minister Dr. Abdul Hafeez Shaikh is now-a-days
accompanying the President to China and Korea.
Four parties who had submitted earnest money worth Rs. 50 million each and
took part in the open bidding process held earlier on August 28, 2003 were
allowed to take part in the next round of the bidding under CCOP's
instructions with Rs. 9.05 per share as base price for acquiring the minimum
of 90 % State Cement Corporation of Pakistan's shareholding (71,797,050
shares) in Thatta Cement Company Limited on 'as is where is' basis. Employees
& Management Group of Thatta Cement Company was allowed by the
Sindh High Court to participate in the bidding in accordance with the rules
and regulations but they failed to deposit the required earnest money and
could not take part in the bidding.
The parties included Al-Abbas Group of Companies, Karachi, Bestway Cement
Limited, Islamabad, Haji Saifullah & Group, Islamabad and Star Cotton
Corporation (Pvt) Ltd, Karachi but Bestway Cement Limited abstained from the
process despite depositing the earnest money. Star Cotton Corporation remained
the highest bidder with an offer of Rs. 10.85 per share making a total offer
for 90 % shares of TCCL as Rs. 778. 997 million. This group was third during
the earlier bidding round held on August 28, 2003 with an offer of Rs. 6. 30
per share. Today Haji Saifullah & Group made an offer of Rs. 10. 75 and stood
second while Al-Abbas Group of Companies was third with an offer of Rs. 9. 95
per share. 10 % shares of TCCL have been allocated for the employees and in
case the employees fail to get this chunk then the successful buyer is bound
to pick up these shares on the same price per share already offered by him.
Therefore, the total price for 100 % shares of TCCL will stand at Rs. 865. 553
million as per the highest offer received.
The bidding took place in accordance with the un-audited accounts of September
30, 2003. Mr. Javaid Ali Khan Senior Director General conducted the bidding
process, which was appreciated by all the participants.
Addressing on this occasion Mr. Saquib Shirazi said that it was always our
endeavor to conduct the process in accordance with the laid down rules and
regulations. He expressed his gratitude to all the three participants for
taking the transaction to a conclusion in a fair and open manner.
Earlier, the Secretary PC Mr. Ahmad Waqar explained the salient features of
the transaction and said that in case of approval by PC Board and CCOP, the
successful bidder would be required to return a loan of about Rs. 248 million
to SCCP. The buyer would be required to make 5 % payment within seven days of
the Letter of Acceptance (LOA) whereas balance amount could be paid within 30
days of LOA, he informed. The highest bid received for the company will be
sent to Cabinet Committee on Privatisation along with the PC Board
recommendations for approval or otherwise. PC had received seven Expression of
Interest from interested parties for the purchase of minimum of 90 % shares of
Thatta Cement Company Limited (TCCL).
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.