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The Privatisation Commission ("PC") is holding bidding to sell a 51%
(33,985,788 shares) equity stake in National Refinery Limited ("NRL" or the
"Company"), together with management control, to a qualified strategic
investor on an 'as is, where is' basis on May 31, 2005 (Tuesday) at PC's
Conference Room, Islamabad. Eleven pre-qualified parties have completed their
due diligence in the data room. The prospective bidders have been asked
to submit earnest money latest by May 27, 2005 to become eligible for
participating in the bidding process. The pre-qualified parties include1.
Abraaj Green Consortium, 2. Al Ghurair Investments, 3. Attock Oil Group, 4.
Crescent Steel and Allied Products and Shakarganj Mills Limited, 5. Fauji
Foundation, 6. Gharibwal Cement Limited and Consortium, 7. Gul Ahmed Group, 8.
KPC Holdings (Aruba) AEC, 9. Lukoil International Trading and Supply
Company, 10. Orient Petroleum Inc. and Consortium and 11. Pakistan Refinery
Limited. 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.
PC invited Expressions of Interest ("EOIs") from interested parties to acquire
the indicated shareholding and management control in the Company on October
23, 2004 and received unprecedented response for the privatisation of National
Refinery Limited (NRL), which set a new record as regard to the participation
in this transaction by 29 local and foreign investors.
For the financial year ended June 30, 2004, NRL's net sales were more than Rs.
40 billion and profit after tax was Rs. 1,850 million. The company's financial
performance has improved consistently over the last seven years.
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,
speciality 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.