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The Privatisation Commission has received the highest offer of Rs.1211. 1
million during two-phase round of bidding for the sale of Faletti's Hotel held
here today under the supervision of Dr. Abdul Hafeez Shaikh, Federal Minister
for Privatisation & Investment. The authorized representatives of those
bidders who have 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), which is meeting shortly. After approval
from CCOP the bidder will be declared as successful and Letter of Intent (LOI)
will be issued to him for making the payment within a period of 30 days.
Addressing on this occasion Dr. Abdul Hafeez Shaikh said that the completion
of a stuck transaction for years through a transparent process would send a
strong signal for the other upcoming transactions.
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.
The Minister termed the transaction as a historic one, which was participated
by excellent set of potential investors and further stated that the investors
were coming forward in a big way to take part in the privatisation program.
The revival of dead units like Associated Cement Rohri, Kohinoor Oil Mills,
Hyatt Regency Karachi Hotel Project building and now Faletti's Hotel would
generate economic activity, he added.
Referring to the upcoming transactions Dr. Hafeez Shaikh said that for
transferring the benefit of privatisation to the common man PC was all set to
open subscription of the Secondary Public Offering of GoP shares in Pakistan
Airlines (PIAC) from June 7 to June 9, 2004 with a particular focus to give
preference to smaller applications for a minimum of 500 shares with a minimum
investment of Rs.10000/= only at the rate of Rs.20 per share. The Initial
Public Offering of Pakistan Petroleum Limited (PPL) and Kot Adu Power Company
(KAPCO) would follow in June and July respectively, he stated.
He further stated that the privatisation process of Pakarab Fertilizers,
National Investment Trust, Faisalabad Electric Supply Company (FESCO),
Jamshoro Power Company (JPC) and Karachi Electric Supply Corporation was
moving forward and the first pre-bid meeting for KESC was being held at
Islamabad on May 8, 2004. PC intended to maintain the momentum and further
accelerate the pace of privatisation with utmost care and transparency, he
added.
The representatives of the highest and the runner up bidders lauded the
privatisation process of Faletti's Hotel. The Rep; of M/s 4 B Marketing
expressed the intentions of his group to build a quality and modern hotel
within a period of 36 months.
This prime property has approximately total area of 68 kanals 11 marla 11 sq.
ft. It has 44 large residential rooms, banquet hall, restaurant and facilities
like tourist office, post office and travel and tour operating agencies. Only
those prospective bidders who submitted EOI were allowed to visit the site.