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A Share Purchase Agreement (SPA) 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) was signed here today. Mr. Farrukh
Qayyum Secretary Ministry of Privatisation & Investment signed 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 signed 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. It was the requirement of the
bidding documents to sign SPA within four days after receiving the 25 %
payment of the bid. The remaining amount will be deposited after one month.
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.
Nine parties were pre-qualified 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.