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An authorised representative of the Attock Oil Group of Companies handed
over a pay order worth Rupees Twelve Billion Eleven Million Three Hundred
Fifty One Thousand Seven Hundred Three only (Rs.12,011,351,703/- ) as the
remaining amount of the total offer of Rs.16.415 billion for acquisition of
Strategic Stake of 51 % (33,985,788) shares of National Refinery Limited (NRL)
together with transfer of management control here today.
Earlier, 25 % of the total offer worth Rupees four billion one hundred three
million seven hundred eighty three thousand nine hundred one only
(Rs.4,103,783,901/=) was received by Privatisation Commission on June 21, 2005
as first instalment in this regard. A formal handing over ceremony is being
scheduled at Karachi on July 7, 2005.
As per sale agreement the buyer was required to deposit the remaining 75 %
amount within 60 days after issuance of letter of acceptance. The Attock Oil
Group could have made the final payment of Rs.12.011 billion (adjusted for
Rs.300 million earnest money already submitted by them) by August 06, 2005.
However, the Group had indicated at the time of paying the first installment
that it would make the remaining payment during July 2005.
The Bidding for NRL privatisation was held on May 31, 2005 and Privatisation
Commission (PC) Board recommended the offer for approval of Cabinet Committee
on Privatisation (CCOP), which approved on June 7, 2005 the sale of 51%
(33,985,788 shares) equity stake in National Refinery Limited ("NRL" or the
"Company"), together with transfer of management control to the Attock Oil
Group. Privatisation Commission engaged Citigroup Global Markets Limited
of UK in April last year to provide financial advisory services for the
privatisation of the National Refinery Limited.
Three pre-qualified bidders 1. Attock Oil Group, 2. Crescent Steel and Allied
Products and Shakarganj Mills Limited and 3. Fauji Foundation Consortium had
become eligible for bidding after depositing Rs.300 million each as earnest
money by the due date.
The Attock Oil Group submitted the highest bid with an offer of Rs.483/- per
share and total bid value of Rs.16. 415 billion, Crescent Steel and Allied
Products and Shakarganj Mills Limited were second ranked bidder with an offer
of Rs.260/- per share with a total bid value of Rs.8. 836 billion while Fauji
Foundation Consortium was the third ranked bidder witn an offer of
Rs.197/- per share and a total bid value of Rs.6. 695 billion.
PC received 29 EOI for NRL while 16 parties submitted their Requests for
Statement of Qualification (RSOQs). Among them 11 parties were pre-qualified
for conducting due diligence in the data room. Six parties participated in the
pre-bid conference while three parties finally decided to participate in the
bidding round.
National Refinery Limited was incorporated in Pakistan on August 19, 1963 as a
public limited company. The refinery complex comprises two lube refineries, a
fuel refinery and a Benzene, Toulene and Xylene plant, located in the Korangi
Industrial Area within Karachi, Pakistan's largest city. The Company's
designed crude oil processing capacity is about 2.7 million tonnes per year
(62,050bpsd) with a broad range of petroleum products to cater to Pakistan's
growing demand for petroleum products. NRL is uniquely positioned in the
economic landscape of Pakistan, where it enjoys the unrivalled business niche
as the only local refinery to produce lube base oils ("LBO") and the single
largest producer of high quality asphalts. Effectively, NRL has an 80% share
of the LBO market and 80% share of asphalts. In addition to indigenous
blenders, LBO produced is sold to several MNC marketing companies where it
serves as a key component in the production of high-end branded lubricants. In
addition, the company produces other value added petroleum products, specialty
oils and slack waxes. NRL products adhere to stringent international quality
specifications and the Company is certified in accordance with OHSAS-18001 and
ISO-14001.