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The Privatisation Commission ("PC") will soon invite formal Expressions of
Interest (EOI) from interested parties to privatise strategic equity stake in
Pakistan Steel Mills Corporation ("PSMC" or the "Company"), together with
management control on fast track basis. A consortium led by Citigroup Global
Markets Limited is advising the PC on this transaction.
Pakistan Steel is the first integrated iron and steel works of Pakistan, which
was set up with techno - economic collaboration of the former USSR. It has a
production capacity of 1.1 million tones per annum with built-in potential for
a total 3.0 million tones per annum capacity. Located 40km south east of the
coastal city of Karachi, PSMC makes a range of long and flat steel products.
In the fiscal year 2004-05 PSMC has recorded annual sales of over Rs. 30
billion and net profit of Rs 6 billion.
A Request for Statement of Qualification ("RSOQ") will be dispatched to the
investors expressing formal interest in the privatisation process of PSMC. The
RSOQ package will contain pre-qualification requirements and other relevant
information. PC would pre qualify investors based on the criteria spelled out
in the RSOQ. Following this, pre-qualified investors would be allowed to
conduct due diligence and participate in a transparent and competitive bidding
process.