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The Privatisation Commission received highest offer of Rs.305 per share
making a total of Rs.3. 204 billion from Bestway Cement Ltd for the sale of
85.29 % shares (10,507,934 shares) of Mustehkam Cement Limited (MCL) 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 three parties who became eligible for
participating in the bidding process after depositing the earnest money of Rs.
75 million. The parties included 1.Bestway Cement Ltd, 2. Maple Leaf Cement
Factory Ltd and 3. Three Stars Hosiery (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. Bestway Cement Ltd gave an offer of
Rs.185 Per share making the total bid offer as Rs.1. 943 billion 2. Maple
Leaf Cement Factory Ltd offered Rs.125/- with a total offer of Rs.1. 313
billion and 3. Three Star Hosiery Mills (Pvt) Ltd gave offer of Rs.85/- per
share making the total offer as Rs.893 million.
During the second open bidding round the bidders were asked to improve the
highest offer of Rs.185 per share given by Bestway Cement Limited in multiples
of Rs.5/- per share. Three Star Hosiery Mills improved their final offer to Rs
260 per share with a total offer of Rs. 2.732 billion and Mapel Leaf Cement
Factory Ltd gave final offer of Rs.300/- per share with a total of Rs. 3. 152
billion. However, Bestway Cement Ltd gave the highest final offer of Rs.305/-
per share with a total of Rs.3. 204 billion.
MCL is a public limited company listed on the stock exchange. The original
unit commenced its production in 1966, while the new unit started commercial
production in 1981. The company produced Portland cement. The plant is located
at Hattar, Haripur and has a rated capacity of 630,000 tons per annum. The
unit holds approx. 444 acres of land, while the factory area is approx. 146.3
acres. It was closed down in 1999 and employees were paid off GHS/VSS.
Addressing on this occasion Dr. Abdul Hafeez Shaikh said that the offer
received for Mustehkam Cement was reasonable, 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 necessary approval. The GoP shall assume SCCP loans
of Rs. 1,239. 534 million as on June 30, 2005.
The Minister said that the government would be ready to sell its entities on
reasonable and genuine price and bring in efficiency and to operate them in a
professional manner to benefit the country and the people. Mr. M. Tahsin Khan
Iqbal Secretary Privatisation Commission conducted the bidding proceedings.
The representatives of the bidders termed the policy and the process of the
privatisation fair, open, transparent and beneficial to both the investors and
the country.