|
|
|
|
|
The Privatisation Commission (PC) has canceled the Letter of Acceptance
(LOA) of M/s Ibrahim Fiber who had failed to fulfill the obligations for
purchase of Pak American Fertilizers Ltd (PAFL) by forfeiting their earnest
money of Rs.350 million and has initiated necessary legal and administrative
actions as provided in the bidding documents against the defaulter party.
Meanwhile a Letter of Acceptance (LOA) in favour of the second highest bidder
i.e. AZGARD-9 & Jehangir Siddiqui Securities Consortium for the strategic sale
of Pak American Fertilizers Ltd (PAFL) at their offer of Rs.16.11 billion at
the rate of Rs.537 per share also been issued.
The CCOP had given approval to the proposal of the Privatisation Commission on
March 31, 2006 in this regard. The second highest bidder i.e. AZGARD-9 &
Jehangir Siddiqui Securities Consortium will deposit 25 % of their offer of
Rs.16.11 billion within 14 days and remaining 75% amount less earnest money
in 60 days from the date of the issuance of LOA.
PAFL is the first fertilizer manufacturing concern in Pakistan. It was
established in 1959. The bidding for the privatisation of PAFL was held at
Karachi on February 28, 2006.
Pak American Fertilizers Limited (PAFL) is located at Iskanderabad (Daudkhel),
Distt: Mianwali and produces 1050 metric tons of urea per day. PAFL is the
subsidiary of National Fertilizer Corporation of Pakistan (NFC). Japan Bank of
International Cooperation (JBIC) provided loan for setting up the fertilizer
plant. The plant was commissioned in 1999. The old plant was closeddown
in 1997 and a new Ammonia/Urea Plant commenced commercial production
in1999. The new plant is designed to produce 600 Ton/Day Ammonia and
1,050 Ton/Day urea using natural gas as feed and fuel. Both plants have
been designed by TOYO Engineering Japan. Ammonia plant is under license from
Kellogg International, USA, while urea plant is TEC's own. The plants
are latest in design and most modern. The company possesses over 11,481
Kanals of land, comprising 6,432 for Factory, 2,818 for Housing Colony and
2,230 for experimental farm.