LYALLPUR CHEMICALS & FERTILIZERS LIMITED FETCHES HIGHEST OFFER OF Rs.280.20 MILLION
Islamabad, December 02, 2006

The bidding for the sale of minimum of 100% shares of Lyallpur Chemicals & Fertilizers Limited (LCFL) fetched the highest offer of Rs.280.20 million at the rate of Rs.280.20 per share in the open bidding round held under the auspices of the Privatisation Commission here today in the presence of the representatives of the print and electronic media. Mr. Zahid Hamid Federal Minister for Privatisation & Investment supervised the bidding process while member of the National Assembly’s Standing Committee on Privatisation & Investment Ms. Gul-e-Farkhanda witnessed the proceedings on special invitation.

In the first round the authorized representatives of the three eligible parties, which had deposited the earnest money Rs.40 million each within the stipulated period i.e. 1. Al-Hamd Chemicals (Pvt) Ltd Lahore, 2. ATC Processing (Pvt) Ltd Lahore and 3. Sheikh Muhammad Tahir & Sheikh Muhammad Akbar Lahore dropped the sealed bids in the bid box while representatives of the print and electronic media opened and read out the bids.

According the results of the first round Al-Hamd Chemicals (Pvt) Ltd Lahore offered Rs.275/- per share with a total offer of Rs.275 million, ATC Processing (Pvt) Ltd Lahore bid was Rs.90.41 per share with a total of Rs.90.410 million and Sheikh Muhammad Tahir & Sheikh Muhammad Akbar Lahore remained the lowest with an offer of Rs.75/- per share i.e. Rs.75 million.

In the second open round the bidders were given a chance to improve their bids, which was not exercised. Finally, the highest bidder of first round was asked to match the reference price of Rs.280.20 million, which he met. The Privatisation Commission Board will consider the highest offer received in its upcoming meeting for recommending it for CCOP’s decision. 10 % of LCFL will be given to those workers of the unit who will not opt for VSS/GHS scheme.

Mr. Zahid Hamid Federal Minister for Privatisation & Investment said that the privatisation of public sector entities would continue in an open, fair and transparent manner by providing level playing field to all the eligible and quality players, which would not only bring the private sector forward to improve the quality of production and efficiency with modern technology but it would also generate employment opportunities through expansion in the entities and their operations.

Member of the National Assembly’s Standing Committee on Privatisation & Investment Ms. Gul-e-Farkhanda who witnessed the proceedings said that the whole process was very transparent and was in accordance with the set procedures. All the bidders also termed the process fair and transparent stating that all the parties were given equal chance to participate. While talking to the media the highest bidder Chairman of Al-Hamd Chemicals (Pvt) Ltd Mr. Iftikhar Nazir Chaudhry said that their group would expand the operations of LCFL to enhance production and benefit the agriculture sector of the company by taking along the workers of the unit.

LCFL produces Powdered Single Super Phosphate (SSP) and Zinc Sulphate. The Sulphuric Acid required for the production of both SSP and Zinc Sulphate is also produced within the unit. The plant was rehabilitated and re-commissioned in May 1999. The unit production capacity include Single Super Phosphate (Powdered) 72,000 Metric Ton Per Annum, Sulphuric Acid 30,000 Metric Ton Per Annum and Zinc Sulphate1, 500 Metric Ton Per Annum. The marketing of the products is carried out by NFC’s subsidiary company, National Fertilizer Marketing Limited (NFML).

National Fertilizer Corporation of Pakistan Limited (NFC) is the owner of Lyallpur Chemicals & Fertilizers Limited (LCFL), which is an unlisted public company registered under the Companies Ordinance 1984. The authorized, issued and paid up capital of the company is Rs. Ten (10) million with one (1) million share of Rs. 10/- each.

PC had invited Expressions of Interest (EOI) from prospective investors (fertilizers companies, industrial companies and groups, consortium of investors who can demonstrate their ability to efficiently manage and operate the company located at Jaranwala.