ALL SET FOR OPEN BIDDING OF KOHINOOR OIL MILLS ON MAY 04, 2004

Islamabad, April 22, 2004

The Privatisation Commission is all set for an open bidding for the privatisation of Kohinoor Oil Mills Limited (KOML) through the sale of upto 60.5 % shares on 'as is where is' basis, being held on May 04, 2004 (Tuesday) at 12.00 noon under the supervision of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment. The representatives of print and electronic media will also witness the bidding process.

10 prospective bidders participated in the final round of the pre-bid moot held on April 13, 2004 under the chairmanship of Mr. Salim Gul Secretary PC and agreed to start bidding from the floor price of Rs.140/= per share (which is not the reference price) with a minimum increase of Rs.5/= or its multiple to raise their bids. The participants were asked to deposit the required earnest money latest by April 30, 2004 (Friday) along with the required documents to become eligible for participation in the open bidding. The respective representatives of the print and electronic media will be invited to witness the process.

The interested parties visited the company and had completed the due diligence process with necessary assistance from the Ghee Corporation of Pakistan (GCP). The liabilities owed to the Government upto the date of transfer of this transaction will not be passed on to the successful buyer. The Government intends to sell 60.5 % (3,16,969) shares of KOML while remaining shares are with other private individuals and the institutions.

KOML is situated on land measuring approx. 62.2 acres on main GT Road, Kala Shah Kaku, Tehsil Ferozewala, Distt; Sheikhupura. It was converted into  public limited company in 1971 and nationalized in September 1973. All  employees of the unit were paid VSS/GHS in 1997.

The Mills vegetable Ghee Plant has a capacity to produce 27200 M. Ton of Ghee while the Solvent Extraction Plant has annual rated capacity of 33000 M. Ton. Unlike other Ghee Mills, this unit also has seed handling/ crushing equipment as well as Solvent Extraction Plant (SEP). SEP was closed down in 1995 while Ghee manufacturing was stopped in 1997. All employees of this  unit were laid off by paying GHS/VHS in 1997.

The 19 parties who had submitted EOIs include Al-Hamza Ship Breaking Company, Karachi, Petrosin Engineering Pvt Ltd, Islamabad, Canal Associates, Lahore, Sardar Muhammad Ashraf D. Baluch Pvt. Ltd, Karachi, Lilly International (Pvt) Ltd, Islamabad, Treet Corporation Ltd, Lahore, Hashoo  Group, Islamabad, M/s Muhammad Humayun, Islamabad, A.A Enterprises, Karachi, Bara Ghee Mills, Bara, Bismillah Textile Limited, Faisalabad, Kohinoor Sugar Group, Lahore, Afzal Motors, Peshawar, Husnain Cotex Ltd, Lahore, Tahir Omer Industries (Pvt) Ltd, Muridke, Ayub Brothers, Lahore, Arch Sons, Karachi, Kohisar Enterprises, Karachi and Sartaj Roller Flour Mills, Lahore.