|
|
|
|
|
The Privatisation Commission (PC) has received highest offer of Rs.14. 125
billion for the privatisation/ sale of 74,306,100 shares of Pak Arab
Fertilizers (Pvt) Limited (PAFL) under the supervision of Dr. Abdul Hafeez
Shaikh Federal Minister for Privatisation & Investment and in the presence of
a large number of representatives of the print and electronic media here
today.
Addressing on this occasion Dr. Hafeez Shaikh said that it was the country's
largest unit in the manufacturing sector, which would enable the private
sector to develop the fertilizer industry of the country. It would also give
boost and momentum to the other upcoming transactions, he said.
He said that the privatisation of PAFL would convey a positive signal to the
whole world, which was conducted in a purely professional and transparent
manner and participated by four major parties including 1. Consortium of
Reliance Export under the umbrella of Fatima Group and Arif Habib Group, 2.
Dawood Hercules Chemical Limited, 3. Consortium of Nishat Chunian and Umar
Fabrics and 4. Al-Ghurair Investment L.L.C.
Dr. Shaikh said that with the support of the Presdient, the Prime Minister,
Ministry of Industries, IPIC, NFC and the efforts of CCOP, PC Board, PC
Officals, the commited bidders and the media the transaction was brought to
the bidding point.
Replying to a question the Minister said that it was the credit of the present
government that during the privatisation of 21 units in the past not even a
single worker was retrenched from the service. We always focus to transfer the
benefits of privatisation to the workers and have always tried to resolve
their long standing issues as well, he added.
The privatisation of dead assets like Thatta Cement, AC Rohri Cement, Kohi
Noor Oil Mills, Faletti's Hotel and Hyatt Regency Karachi Hotel Project has
created new job opportunities for the people of the repsective regions. On May
16, 2005 PC Board would formulate its recommendations regarding the highest
offer received for PAFL for CCOP's approval, which was expected to meet next
week, he informed.
Earlier, the authorized representatives of all the four eligible major groups,
which had deposited Rs.150 million each as earnest money during the stipulated
period dropped their sealed bids in the transparent bid box, which were opened
and read over by the senior representatives of the print and electronic media
present during the ceremony. Consortium of Reliance Export under the umbrella
of Fatima Group and Arif Habib Group gave highest offer of Rs.14. 125,589,610
billion @ Rs. 190. 10 per share while , 2. Dawood Hercules Chemical Limited
remained second with offer of Rs.12. 409,118,700 billion @ Rs.167 per share,
3. Al-Ghurair Investment L.L.C. UAE secured third position with an offer of
Rs.10. 774,384,500 billion @ Rs.145 per share. Consortium of Nishat Chunian
and Umar Fabrics was the lowest with Rs.9. 511,180,800 billion @ Rs.128 per
share offer. The three highest bidders were invited during the second open
bidding round to improve their bids but none of them responded and the lower
ones withdrew in favour of the highest bidder.
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.
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 had
received 11 EOIs for PFL. 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 SuiNorthern 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.