BOLAN TEXTILE MACHINERY RECEIVES Rs. 110 MILLION OFFER

Islamabad, September 15, 2005

Twelve parties took part in the bidding process for the sale of assets of Bolan Textile Mills Machinery (BTM) held under the auspices of Privatisation Commission chaired by Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment here today.

During the first sealed bid opening round, the authorized representatives of the bidders dropped their bids in the bid box, which were later opened and read by the representatives of the print and electronic media.

Among twelve parties three emerged as the top three, which included Sadaf Enterprises with an offer of Rs. 72.5 million, SAF & Company Rs. 70 .7 million and Nawaz Khan Trading Co offered Rs. 69 .6 million. In the second open bidding round all the three top bidders were asked to improve their bids to an acceptable level with a multiple of Rs. 0.5 million to the highest offer of Rs. 72.5 million as the floor price.

The second round got offers of Rs. 110 million from Sadaf Enterprises, Rs. 105 million from SAF & Company and Rs. 89 million from Nawaz Khan Trading Co. Nobody could match the minimum price of Rs. 141.705 million. The Secretary Privatisation Commission informed the audience that some of the machinery and the land of the Mill has been given to Government of Baluchistan for an IT University while remaining machinery was in junk position. The results of the bidding will be placed before the Board of Privatisation Commission for their recommendations for the CCOP.

Bolan Textile Mills is a project of Iran Pakistan Industries (Pvt) Ltd (IPI) situated at Baleli (near Quetta Airport), District Quetta, Baluchistan. The machinery of Bolan Textile Mills (Spinning, Weaving, Processing and Auxiliaries) was offered on an "as is where is" basis through a competitive process. The machinery is a part of fully integrated unit of 50,000 spindles, 1,100 looms with complete dyeing and finishing facilities of around 80,000 meters per day production capacity of variable widths ranging from 36" to 96". The plant started production in January 1980 but was closed down in 1983.