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A Share Purchase Agreement ceremony is being held at Marriott Hotel,
Crystal Ball Room, Islamabad following its handing over to the successful
bidder, on August 23, 2006 (Wednesday) at 1445 hrs in the presence of Mr.
Zahid Hamid Federal Minister for Privatisation & Investment and the
representatives of the print & electronic media. The Privatisation Commission
received highest offer of Rs.80 per share making a total of Rs.4. 315 billion
for the sale of 96.34 % shares of Javedan Cement Limited (JCL) from Haji Ghani
Usman and
Group during a bidding process held in September last year.
The highest bid received was duly recommended by the PC Board and got approval
of the CCOP being within the acceptable range. The handing over of Javedan
Cement Limited will bring an efficient company into existence, which is a good
omen for the industrialisation of Pakistan. The highest bidder had already
deposited the 25 % required amount with the PC, however, due to litigation the
transfer of the unit got delayed.
In September last year during the first round sealed bids were dropped in a
transparent glass box by the authorised representatives of four parties who
became eligible for participating in the bidding process after depositing
Rs.75 million as earnest money. The parties included 1. Al-Munaf Corporation,
2. Haji Ghani Usman And Group, 3. Siddiqsons Denim Mills Limited and Valibhai
Kamruddin (SIND) Pvt Ltd. The bids were opened and read out by the senior
journalists of print and electronic media.
According to the first round results 1. Al-Munaf Corporation gave an offer of
Rs.33. 10 Per share making the total bid offer as Rs.1. 785 billion 2. Haji
Ghani Usman And Group offered Rs.25/- with a total offer of Rs.1. 348 billion
3. Siddiqsons Denim Mills Limited gave a bid of Rs.40/- with a total of Rs.2.
157 billion and Valibhai Kamruddin (SIND) Pvt Ltd gave offer of Rs.20/- per
share making the total offer as Rs.1. 078 billion.
During the second open bidding round the bidders were asked to improve the
highest offer of Rs.40 per share given by Siddiqsons Denim Mills Limited in
multiples of Rs.5/- per share. The second round made Al-Munaf improved their
offer to Rs.45/- per share, Siddiqsons Denim Mills Limited came on the top
with an offer of Rs.50/- per share. Later all the bidders in order of
seniority were asked to match the minimum acceptable price of Rs.80/- per
share. Haji Ghani Usman and Group equalled the bid making a total offer as
Rs.4. 315 billion.
The representatives of the bidders had termed the bidding process as the most
transparent and according to their satisfaction. The representative of Haji
Ghani Usman and Group has planned to take care of the workers and also install
a powerhouse of 100 MW.
The Privatisation Commission (PC) had received 43 Expression of Interest (EOI)
from interested parties for the privatisation of Javedan Cement Limited (JCL)
on an "AS IS WHERE IS" basis through the sale of its 96.34% shares held by
State Cement Corporation of Pakistan (Pvt.) Ltd. (SCCP) the holding Company.
JCL is a public limited company listed on Karachi Stock Exchange since 1962
and registered under the Companies Ordinance 1913 (now Companies Ordinance
1984). JCL is located north of Karachi over an area of 1200 acres in the
Manghopir hills alongwith 3159 acres of Mining lease land (Quarry).
The Company started the production of cement in 1964 with 500 tonnes per day
capacity and currently the rated capacity of the plant is 600,000 tonnes per
annum. The plant is based on the latest technology of cement manufacturing
involving suspension pre-heater and short dry process kiln. Presently JCL has
three kilns including the first dry process plant installed in Pakistan in
1980.
Its main products include Ordinary Portland cement, Slag cement and Sulphate
resistant cement. While its Inputs/Raw Material include Lime Stone,
Clay/Shale, Iron Ore, Gypsum, and Slag.