PAK-AMERICAN FERTILIZERS LIMITED FETCHES HIGHEST OFFER OF RS.19. 999 BILLION

Karachi, February 28, 2006


The bidding of Pak American Fertilizers Limited (PAFL) received the highest offer of Rs. 19. 999, 800,000 billion from Ibrahim Fibers Limited here today. The bidding was held under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment. PAFL is the first fertilizer manufacturing concern in Pakistan. It was established in 1959.

During the first round of bidding the bidders dropped their sealed bids in the transparent box, which were opened and read over by the representatives of the print and electronic media present over there. According the first round results Ibrahim Fibres Ltd, Faisalabad offered the highest bid  of Rs.667/- per share making a total of Rs.19.999,000,000 billion for total number of 30 million shares, AZGARD-9 were second with a bid of Rs.537/- per share with a total of Rs. 16.110,000,000 billion, Kohinoor Textile Mills Ltd & Associates, Lahore offered Rs.453/- per share with a total offer of Rs.13. 590,000,000 billion and remained third while Nishat (Chunian) Ltd, Lahore gave a bid of Rs.451/- per share with a total of Rs.13.530,000,000 billion and Pak Arab Fertilizers (Pvt) Ltd, Multan remined the lowest bidder with an offer of Rs.371/- per share with a total of Rs.11.124,900,000 billion. The second round was held for an open auction among the top three contenders but no bidder increased their earlier offers. The results of the bidding will now be considered by PC Board toformulate its recommendations for a decision by the CCOP.

Addressing on this occasion Dr. Hafeez Shaikh said that the privatization of PAFL was a good omen for Pakistan. He informed that the letter of Acceptance would be issued to the highest bidder after necessary approvals soon. The bidder will deposit 25 % proceeds within 14 days and remaining 75 % in 60 days after the issuance of LOA.

Pak American Fertilizers Limited (PAFL) is located at Iskanderabad (Daudkhel), Distt: Mianwali and produces 1050 metric tons of urea per day. PAFL is the subsidiary of National Fertilizer Corporation of Pakistan (NFC). Japan Bank of International Cooperation (JBIC) provided loan for setting up the fertilizer plant. The plant was commissioned in 1999. The old plant was closed down in 1997 and a new Ammonia/Urea Plant commenced commercial production in 1999.  The new plant is designed to produce 600 Ton/Day Ammonia and 1,050 Ton/Day urea using natural gas as feed and fuel. Both plants have been designed by TOYO Engineering Japan. Ammonia plant is under license from Kellogg International, USA, while urea plant is TEC's own. The plants are latest in design and most modern. The company possesses over 11,481 Kanals of land, comprising 6,432 for Factory, 2,818 for Housing Colony and 2,230 for experimental farm.