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The Privatisation Commission (PC) has received the first installment of25 %
the bid amount from the successful bidder AZGARD-9 amounting to Rs.4.027
billion (Rupees four billion 27 million five hundred thousand only) for the
strategic sale of Pak American Fertilizers Ltd (PAFL) as per the terms of the
bid documents. The remaining amount of the price will be paid within 60 days
after the issuance date of LOA. The Privatisation Commission issued the 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. It may be recalled that pursuant to the Cabinet Committee on
Privatisation (CCOP) decision on March 31, 2006 AZGARD-9 the second
highest bidder was issued Letter of Acceptance (LoA) after the first bidder
failed to with the terms of the bid as per the terms of the LoA.
Mr. Ahmed Shaikh CEO of AZGARD-9 while depositing the 25 % down payment as per
Share Purchase Agreement hoped that through this acquisition his group has
embarked with public private partnership. He expressed the intentions to make
fresh investment for expansion of plant capacity and to increase the
production in order to bridge the short fall in the demand and supply of the
urea. We were determined to work in order to create a win win scenario for
both the public and private sectors and operate in a highly socially
responsible manner supporting the community, the environment and our
workforce, he added. The CEO of AZGARD-9 assured that anybody who wishes to
work on the merit basis would be retained.
Azgard is a leading value added textile exporter form vertical, spinning,
weaving and garments with expected sales of Rs.7 billion this year. AZGARD-9
has acquired PAFL in partnership with Jehangir Siddiqui Securities, one of the
leading groups of Pakistan in financial sector.
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 closed down in
1997 and a new Ammonia/Urea Plant commenced commercial production in
1999. 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.