KOHINOOR OIL MILLS OPEN BIDDING FOR 60.41 % SHARES FETCHES RS.80.715 MILLION-PC BOARD RECOMMENDS HIGHEST OFFER FOR CCOP’s APPROVAL

Islamabad, May 04, 2004

Kohi Noor Oil Mills (KOML) fetched highest offer of Rs. 80. 715 million in an open bidding held under the auspices of Privatisation Commission under the supervision of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment here today. Five parties who deposited earnest money participated in the open bidding for the privatisation of Kohinoor Oil Mills Limited (KOML) through the sale of upto 60.41 % shares (3,16,530 shares) on ‘as is where is’ basis. The representatives of the print and the electronic media also witnessed the proceedings.

The bidding started from the floor price of Rs.140/= per share (which was not the reference price) with a minimum increase of Rs.5/= or its multiple to raise the 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 Government intends to sell 60.41 % (3,16,530) shares of KOML while remaining shares are with other private individuals and the institutions.

Five parties who became eligible for participating in the bidding after submitting earnest money included Petrosin Engineering Pvt Ltd, Islamabad, Canal Associates, Lahore, Mr. Iqbal Khan of Bara Ghee Mills, Bara, Kohinoor Sugar Group, Lahore, Kohisar Enterprises, Karachi. Mr. Iqbal Khan was declared highest bidder who offered Rs. 255/- per share i.e. Rs. 80. 715 million for the offered shares. Kohinoor Sugar Group Lahore remained second with an offer of Rs. 215/= per share (Rs.79. 132 million) while Kohisar Enterprises, Karachi gave a bid of Rs.215/- per share (Rs. 68. 054) and stood third.

Addressing on this occasion the Federal Minster for Privatisation & Investment Dr. Abdul Hafeez Shaikh said that the highest offer received for Khoinoor Oil Mills shares was above the reference price. The highest bidder after approval of PC Board and CCOP has expressed his determination to revive the unit, which had been closed since 1997. He added that the revival of the Unit would not only generate economic activity but it would also provide employment opportunities to the people of the area.

Later, the result of the bidding of Kohinoor Oil Mills was presented before the Board of Privatisation Commission, which was chaired by Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment. The Privatisation Board decided to recommend the highest offer for approval of the Cabinet Committee On Privatisation (CCOP), which is schedule to meet on May 7, 2004.

The meeting further decided that in view of the general public interest the Initial Public Offering (IPO) of Pakistan Petroleum Limited (PPL) should be targeted for the last week of May, while Secondary Public Offering of Pakistan International Airlines (PIA) and Initial Public Offering (IPO) of Kot Adu Power Company (KAPCO) should follow during the month of June. The PC Board recommended that keeping in view the experience of SSGC’s Secondary Public Offering where all the more than 250,000 smaller applicants could not  be accommodated due to the smaller percentage of the offer, the percentage  for PPL, PIAC and KAPCO offers should be raised to a realistic level and  fresh approval from CCOP should be sought in this regard.

The meeting also reviewed the implementation status of the decisions taken for the privatisation of various transactions. The privatisation of power sector entities, including Faisalabad Electric Supply Company (FESCO), Peshawar Electric Supply Company (PESCO) and Jamshoro Power Company (JPC) was also discussed.

The PC Board members, senior officials of the respective Ministries and PC   Consultants were also present during the meeting.