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The Privatisation Commission ("PC") has finalised all arrangements to hold
bidding in the presence of the representatives of the print and electronic
media for the sale of 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 under the
Chairmanship of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation
& Investment on May 31, 2005 (Tuesday) at 1300 hrs (Sharp) at Marriott Hotel,
Islamabad. The Federal Minister for Petroleum & Natural Resources and PC Board
members will also be present on this occasion. Eleven pre-qualified parties
completed their due diligence in the data room, which included1. 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.