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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.