SUCCESSFUL BIDDER PAYS RS.1211.1 MILLION FOR FALETTI's HOTEL

Islamabad, July 02, 2004

A representative of M/s 4 B Marketing who gave the highest offer of Rs.1211. 1 million for Faletti's Hotel, Lahore on as is where is basis, deposited the money with the Privatisation Commission. A sale agreement to this effect will be signed shortly. The senior officials of the Privatisation Commission and PTDC were also present on this occasion.

Prior to hading over the draft the rep; met the Federal Minister for Privatisation and Investment Dr. Abdul Hafeez Shaikh who appreciated the interest shown by the investor in the transaction and said that we were endeavoring to bring into life the dead assets of the country. He hoped that the new buyer would build a quality hotel, which would generate tourism activity in the historical city of Lahore. The buyer appreciated the transparent privatisation process of the Hotel and communicated that the company was determined to build a quality Hotel during the next three years.

The Privatisation Commission received the highest offer of Rs.1211. 1 million during two-phase round of bidding for the sale of Faletti's Hotel on May 29, 2004, which was held under the supervision of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment. The authorized representatives of those bidders who had deposited the earnest money participated in the bidding in the presence of the representatives of print and electronic media.

The representatives of the media opened the sealed bids in the first phase of the bidding round. M/s 4 B Marketing gave the highest offer of Rs.1211. 1 million while the other bids were: M/s Elite Home Fashions (pvt) Limited Rs.860 million, M/s Tourism Promotion Services (Pakistan) Limited Rs.612 million, M/s Hashwani Hotels Limited Rs.540 million, M/s Unique Trading Company Rs.510 million, M/s A.A. Enterprises Rs.410 million and Pace Pakistan Limited Rs.400 million.

The second phase of the bidding round invited the three highest bidders to increase the highest offer with a minimum increment of Rs.5 million or it's multiple thereof. Both the runner up parties announced to withdraw from the competition, which enabled M/s 4 B Marketing to be declared as the highest bidder.

Later, the Board of Privatisation Commission in its meeting recommended the highest offer received from M/s 4 B Marketing for approval of the Cabinet Committee on Privatisation (CCOP). After approval from CCOP the bidder was declared as successful and a Letter of Intent (LOI) was issued to the successful bidder for the sale of Faletti's Hotel.

Faletti's Hotel, Lahore was offered for sale on 'as is where is' basis to those parties who are interested in establishing/ maintaining it a quality hotel of international repute within reasonable timeframe while ensuring that the new design of the Hotel will be in harmony with the existing architecture and preservation of its historic identity. 

PC received 43 Expression of Interests from the interested parties in response to the invitation to the investors for this transaction while seven bidders deposited Earnest Money of Rs.30 million each within the stipulated period with the Privatisation Commission for becoming eligible to participate in the bidding process.