JAVEDAN CEMENT LIMITED (JCL) FETCHES RS.4.315 BILLION

Islamabad, September 14, 2005

The Privatisation Commission received highest offer of Rs.80 per share making a total of Rs.4. 315 billion for the sale of 96.34 % shares of Javedan Cement Limited (JCL) from Haji Ghani Usman and Group during a bidding process held under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment here today.

During the first round sealed bids were dropped in a transparent glass box by the authorised representatives of four parties who became eligible for participating in the bidding process after depositing Rs.75 million as earnest money. The parties included 1. Al-Munaf Corporation, 2. Haji Ghani Usman And Group, 3. Siddiqsons Denim Mills Limited and Valibhai Kamruddin (SIND) Pvt Ltd. The bids were opened and read out by the senior journalists of print and electronic media.

According to the first round results 1. Al-Munaf Corporation gave an offer of Rs.33. 10 Per share making the total bid offer as Rs.1. 785 billion  2. Haji Ghani Usman And Group offered Rs.25/- with a total offer of Rs.1. 348 billion 3. Siddiqsons Denim Mills Limited gave a bid of Rs.40/- with a total of Rs.2. 157 billion and Valibhai Kamruddin (SIND) Pvt Ltd gave offer of Rs.20/- per share making the total offer as Rs.1. 078 billion.

During the second open bidding round the bidders were asked to improve the highest offer of Rs.40 per share given by Siddiqsons Denim Mills Limited in multiples of Rs.5/- per share. The second round made Al-Munaf improved their offer to Rs.45/- per share, Siddiqsons Denim Mills Limited came on the top with an offer of Rs.50/- per share. Later all the bidders in order of seniority were asked to match the minimum acceptable price of Rs.80/- per share. Haji Ghani Usman And Group equalled the bid making a total offer as Rs.4. 315 billion. The ex-owner Valibhai Kamruddin (SIND) Pvt Ltd were given the right to match the highest offer, which they voluntarily declined stating that they cannot match the final offer. The bidding results are being submitted before the High Court of Sindh on September 15, 2005.

Addressing on this occasion Dr. Abdul Hafeez Shaikh said that we could not sell our national assets in haste and on throwaway price. He informed that the offer received for Javedan Cement was within the acceptable area, which would be placed in the upcoming meeting of the Board of Privatisation Commission for its recommendations and then it would be placed before the Cabinet Committee on Privatisation (CCOP) for its decision.

The Minister hoped that the bidding process of Javedan Cement Limited would bring an efficient company into existence, which was good omen for the industrialisation of Pakistan. The representatives of the bidders termed the bidding process as the most transparent and according to their satisfaction. The representative of  Haji Ghani Usman And Group said that they would take care of the workers and also install a power house of 100 MW.