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Privatisation Commission has engaged Citigroup Global Markets Limited of UK
to provide financial advisory services for the privatisation of the National
Refinery Limited.
An Invitation for Expression of Interest was invited from firms/ consortiums
including Investment Banks having ample experience in privatisation,
restructuring and merger/ acquisitions in the Oil & Gas sector for providing
Financial Advisory Services for the privatisation of National Refinery
Limited, which was responded by Nine parties including BMA Capital Management
Limited, Citigroup Global Markets Limited, UK, Faysal Bank Limited, Global
Securities Pakistan Limited, KASB Securities (Pvt) Ltd, Pak Kuwait Investment
Company (Pvt) Limited, KPMG of UK together with Taseer Hadi Khalid & Co.,
PricewaterhouseCoopers Project Advisory Pte Ltd of Singapore and SG Corporate
Financial Advisory of France together with Habib Bank Limited.
A Request for Proposals Package was sent to the aforesaid nine parties who
then submitted technical and financial proposals. An Evaluation Committee
was constituted to evaluate the technical proposals. The committee
prequalified four parties whose financial proposals were opened in their
presence. After combining the technical and financial scores, Citigroup was
found to be the top-ranked interested party. The results of evaluation were
submitted for approval to the Board of Privatisation Commission, which then
authorized carrying out of negotiations with Citigroup for entering into a
financial advisory agreement. The negotiations were successfully concluded and
an agreement with Citigroup has been executed.
Subject to market conditions, it is expected the privatisation of National
Refinery Limited would be completed within one year. Citigroup has been
appointed through a competitive process, strictly in accordance with the
Privatisation Commission (Hiring of Financial Advisor) Regulations, 2001.
The Government has decided to privatise National Refinery Limited. It is
proposed to sell up to 51 % equity of NRL and transfer management control to a
strategic investor.
NRL is a petroleum refining and petrochemical complex consisting of one fuel
refinery; two lube refineries and a BTX (petrochemical) plant. It is located
in Karachi. The company's refineries have a combined processing capacity of
2,710,500 tonnes per annum of crude oil. During the last five years the
plants have been operated at 87 % to 102 % of their crude processing capacity.
For the financial year ended June 30, 2003, NRL's net sales were more than Rs.
36 billion and profit after tax was Rs. 1,352 million. The company's financial
performance has improved consistently over the last seven years.