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A signing ceremony is being held on Monday April 24, 2006 at 1445 hrs at
Privatisation Commission's Conference Hall relating to the sale and purchase
to 75% strategic Stake (1,290,487,275 ordinary shares) in the Share capital of
Pakistan Steel Mills Corporation (PSMC). The Secretary Privatisation
Commission Shaikh Ikramullah will sign on behalf of the Government of Pakistan
while the authorised representatives of Consortium of Magnitogorsk Iron &
Steel Works (Russia), TuwairqiSteel Mills (Saudi Arabia) and Arif Habib
Securities will sign on behalf of their respective groups.
PC had received Rs.5.420 billion i.e. 25 % of the total bid on April 20, 2006
within the stipulated period of 20 days after the issuance of Letter of
Acceptance (LoA), which was issued after the approval of the Cabinet Committee
on Privatisation (CCOP) on March 31, 2006. The remaining amount will be
deposited within the 60 days after the issuance of LoA.
The highest offer of Rs.16.80 per share making a total of Rs.21.680 billion
i.e equivalent to US $ 362 million was offered by the Consortium of
Magnitogorsk Iron & Steel Works (Russia), TuwairqiSteel Mills (Saudi Arabia)
and Arif Habib Securities during the two rounds of bidding, which was held in
front of the large number of the representatives of print and electronic
media. The bids were opened and read out by two senior journalists during the
first round.
The Cabinet Committee on Privatisation (CCOP) had authorised Privatisation
Commission to issue Letter of Acceptance (LOA) to the successful bidder
Consortium of Magnitogorsk Iron & Steel Works (Russia), TuwairqiSteel Mills
(Saudi Arabia) and Arif Habib Securities whose offer was within the acceptable
range.
The bidding determined the value of Pakistan Steel Mills 100 % assets to US $
482 million. Out of 19000 acres of the land of PSMC around 14500 acres worth
about US $ 800 million has been separated from the transaction, which will be
used by the government for appropriate project.
An agreement has been reached with the employees and they have been offered a
package, which has never been given to the employees of any other entity.
Nine parties were prequalified out of which 8 conducted active due diligence.
Out of these, five parties attended the pre-bid meeting. The pre-qualified
parties completed their due diligence of the transaction including plant
visits and physical / virtual data room. Six pre-qualified parties joined and
formed two strong bidding consortiums, which later participated in the
bidding.