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The Privatisation Commission (PC) has received the first installment of Rs.
3. 348 billion (25 %) of the highest offer of Rs.14. 125 billion for the
privatisation/ sale of 74,306,100 shares of Pakarab Fertilizers (Pvt) Limited
(PAFL) in the light of the letter of acceptance issued in this regard.
Mr. Arif Habib on behalf of Consortium of Reliance Export under the umbrella
of Fatima Group and Arif Habib Group handed over a cheques worth Rupees Three
Billion Three Forty Seven Million Seven Hundred Sixty Four Thousand Seven
Hundred Forty Eight only to Dr. Abdul Hafeez Shaikh Federal Minister for
Privatisation & Investment and in the presence of a large number of
representatives of the print and here today.
The Group will make the remaining payment of the bid offer amounting to Rs. 9.
893 billion by the second week of July 2005 while the buyer will also make a
payment of Rs.550 million for Golden Hand Shake (GHS) as their share for the
employees.
Dr. Hafeez Shaikh said on this occasion 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.
The Government of Pakistan will receive 52 % of these proceeds while 48 % of
the same will be given to International Petroleum Investment Company of UAE (IPIC).
The Minister further stated that the privatisation of PAFL would convey a
positive signal to the whole world, which was conducted in the presence of
large number of the representatives of the print and electronic media 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- hurair Investment
L.L.C.
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.
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.