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The Privatisation Commission (PC) has finalized all arrangements for
holding bidding for the privatisation/ sale of 94. 8 % shares of Pakarab
Fertilizers (Pvt) Limited (PFL) on May 14, 2005 ( Saturday) at 1030 hrs at PC
Conference room in the presence of the representatives of the print and
electronic media. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation &
Investment announced here today.
The Minister said that the Privatisation of the country's largest unit in the
manufacturing sector was a milestone achieved through continuous efforts and
it would give impetuous to the over all Privatisation Program. The fertilizer
sector offered strong opportunities for further development by private sector
entrepreneurs, he said.
Until now four parties have submitted Earnest Money of Rs. 150 Million each
alongwith the required documents, which included 1. Consortium of Fatima
Group, 2. Dawood Hercules Chemical Limited, 3. Consortium of Nishat Chunian
and Umar Fabrics and 4. Al-Ghurair Investment L.L.C, he said.
PAFL is 52 % GoP owned private limited company (through National Fertilizers
Corporation) located at Khenawal Road, Multan in the province of Punjab.
International Petroleum Investment Company of UAE (IPIC) owns the balance 48%
shares with a paid-up capital of Rs.743.061 million.. PAFL is a large
fertilizer complex in Pakistan engaged in the manufacture of Calcium Ammonium
Nitrate (CAN), Nitro Phosphate (NP) commonly known as compound fertilizer,
besides Ammonia, Nitric Acid and Urea. PFL was established as a result of
protocol between the Government of Pakistan and State of Abu Dhabi. The
company was incorporated in 1973.
Dr. Hafeez Shaikh further stated that the government was very much careful
while privatising Public Sector entities as we were not selling our assets in
haste to raise the proceeds but we were ensuring to improve the quality of
products and increase the production by enhancing the efficiencies and
services through the involvement of private sector by providing a level
playing field to the investors. Our privatisation program was also aimed at to
bring in life to the dead units and to provide new job opportunities through
their revival and to introduce modern technology for expansion in the
units being privatised, he added.
Eight parties were Pre-Qualified for the due diligence of PFL, which included
Consortium of Fatima Group, Dawood Hercules Chemical Limited, Consortium of
Nishat Chunian and Umar Fabrics, EMG (conditionally pre-qualified), Al-Ghurair
Investment L.L.C., Husnain Cotex Limited, Consortium of Jahangir Siddiqui
Capital Markets (Pvt.) Ltd & Jahangir Siddiqui Investment Bank Limited and
Consortium of Haji Ghani Usman Group (conditionally pre-qualified). PC
received 11 EOIs for PFL. Today was the last day for the submission of earnest
money for becoming eligible to participate in the bidding.
PFL is the largest fertilizer complex in Pakistan and the only factory
producing Calcium Ammonium Nitrate (CAN) and Nitro-phosphate (NP) commonly
known as compound fertilizer. Raw materials for manufacture of the fertilizers
are natural gas supplied by Sui Northern Gas Pipelines Limited through its
transmission network and rock phosphate imported form Jordan/Moroco. The
project is located at Khanewal Road, Multan. The site area comprises 302
(301.47) acres, which includes area for the factory and the housing colony.
The company owns this land area.