CCOP APPROVES SALE OF ASSETS OF AC ROHRI, 12 EOIs RECEIVED FOR DIVESTMENT OF 49 % SHARES OF ABL

Islamabad, SEPTEMBER 17, 2003

The Cabinet Committee on Privatisation (CCOP) approved the sale of assets belonging to Associated Cement Rohri Limited (ACRL) to National Transport  Company (NTC) for Rs.255 millions here today.

The Board of the Privatisation Commission in its meeting held on 6th  September, 2003 had made recommendations to the CCOP to approve the highest bid offered by the National Transport Company.

Associated Cement Rohri Limited is fully owned by State Cement Corporation  of Pakistan (SCCP) was set up at Rohri in 1938 and incorporated as Public Limited Company in 1990. The unit had been producing ordinary Portland Cement, Slag Cement and Sulphate resisting Cement.

All physical assets including plant/equipment and machinery, spares, land and vehicles are in this sale offer. The Expressions of Interest for sale of assets were invited in July this year. Twenty-six parties had submitted EOIs. Pre-bid meetings were held, with the prospective bidders in Islamabad and Karachi, which resulted in modifying the documents to the satisfactions of the prospective bidders.

Nine parties deposited the earnest money of Rs.25 million each and  participated in the bidding held on 28th August 2003. The highest bid of Rs.225 million was made by National Transport Company followed by Rs.250 million by D. G. Khan Cement Company and Rs.240 million by Al-Hamza Ship-breaking Company.

A representative of SBP also apprised the Cabinet Committee on Privatisation of the status of the privatisation of 49% shares of Allied bank of Pakistan.

The Committee directed the State Bank of Pakistan to chalk out a schedule  for the privatisation of ABL's shares. The Committee was further informed that twelve EOIs have been received, which include Commercial Banks, DFIs, Investment Banks and Leasing Companies.

The Federal Minister for Finance Mr. Shaukat Aziz presided over the meeting while the Federal Ministers for Privatisation & Investment, Industries & Production, Water & Power, Labour Manpower and Overseas Pakistanis, Petroleum & Natural Resources and senior officials of respective ministries were also present during the meeting.