PARTIES COMPLETE DUE DILIGENCE FOR KOHINOOR OIL MILLS
SECOND PRE BID ROUND ON APRIL 13, 2004

Islamabad, April 6, 2004

The parties interested for the privatisation of Kohinoor Oil Mills Limited (KOML) through the sale of upto 51 % shares on 'as is where is' basis, have completed the due diligence process with necessary assistance from the Ghee Corporation of Pakistan (GCP) and now they will assemble for the Second pre-bid meeting at Privatisation Commission on April 13, 2004 at 1100 hrs. The first Pre-Bid Conference in this regard was conducted on March 24.

Out of 19 parties who had submitted Expression Of Interest (EOI)s, 16 parties participated in the first round of the pre-bid meeting. It was also decided in the first round that the Date of bidding will be decided in the second round of pre-bid meeting in consultation with the bidders after the completion of the due diligence process. The liabilities owed to the Government upto the date of transfer of this transaction will not be passed on to the successful buyer.

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.