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Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation and Investment
has directed all the stakeholders to expeditiously resolve the remaining
issues to meet the deadline for the privatisation of Pakistan Steel Mills
Corporation (PSMC). He was chairing a meeting to review the progress of the
privatisation of PSMC here today.
The Minister expressed his satisfaction over the progress made so far and said
that in view of the long term impact of the privatisation of PSMC every aspect
should be discussed in depth to complete the transaction in a smooth and most
transparent manner and upto the satisfaction of all stakeholders and the
investors.
The meeting was briefed regarding the critical issues including the mutation
of core land, transfer of non-core land, finalization of services agreement
with Al-Tuwarqi Group, settlement of issues with CBR etc.
The representatives of Ministries of Industries, Production & Special
Initiatives, Finance, Law, Justice and Human Rights, CBR, the Chairman PSMC,
the Chief Executive Officer of National Industrial Park (NIP) and the
Financial Advisors for the transaction Citigroup Global Markets Limited
attended the meeting.
Earlier, five (5) pre-qualified parties participated in the a pre-bid
conference held on January 16, 2006, which included 1. Al-Tuwairqi Group of
Companies, Kingdom of Saudi Arabia with Arif Habib Group of Companies,
Pakistan. 2. Government of Ras Al Khaimah (UAE), 3. International Industries
Ltd (Pakistan) and Industrial Union of Donbass (Ukraine), 4. Magnitogorsk Iron
& Steel Works Open JSC, Russia and 5. Noor Financial Investment Company,
Kuwait. The pre-qualified parties for PSMC have already completed the due
diligence of the transaction through plant visits, physical and virtual data
room.
The Privatisation Commission has offered to qualify strategic Investors
interested for acquiring 75% equity stake in Pakistan Steel Mills Corporation
(Pvt) Ltd. ("PSMC" or the "Company"), together with management control, on an
' as is, where is' basis..
PSMC is the country's largest and only integrated steel manufacturing plant,
with an annual designed production capacity of 1.1 million tonnes. It was
incorporated as a private limited company in 1968 and commenced full-scale
commercial operations in 1984. PSMC complex includes coke oven batteries, a
sintering plant, blast furnaces, steel converters, bloom and slab casters,
billet mill, hot and cold rolling mills, galvanizing unit and 165 MW of own
power generation units, supported by various other ancillary units. It is
located 40 km south east of the coastal city of Karachi, in close proximity to
Port Bin Qasim, with access to a dedicated jetty, which facilitates import of
raw materials, PSMC manufactures a wide mix of products, which includes both
flat and long products, PSMC effectively enjoys a captive domestic market due
to the prevalent demand-supply imbalance in the country's steel industry,
where demand has historically exceeded local
supply.