CCOP APPROVES LOA FOR SECOND HIGHEST BIDDER FOR PAFL


Islamabad, March 31, 2006

The Cabinet Committee on Privatisation (CCOP) which met here today under the chairmanship of Prime Minister Mr. Shaukat Aziz approved the privatisation process of Pakistan Steel Mills Corporation and its bidding today i.e. March 31, 2006. The Privatisation Commission was also authorized to issue Letter of Acceptance (LOA) to the successful bidder.

The CCOP approved the proposal of the Privatisation Commission to cancel the Letter of Acceptance (LOA) of M/s Ibrahim Fiber who had failed to fulfill the obligations for purchase of Pak American Fertilizers Ltd (PAFL). The CCOP also directed the Privatisation Commission to initiate necessary legal and administrative actions as provided in the bidding documents.

The CCOP also approved to offer Letter of Acceptance (LOA) in favour of the second highest bidder i.e. AZGARD-9 & Jehangir Siddiqui Securities Consortium for the strategic sale of Pak American Fertilizers Ltd (PAFL) at their offer of Rs.16.11 billion at the rate of Rs.537 per share.

The CCOP also approved the process of appointment of Lead Manager for placement of Global Depository Receipts (GDR) of Oil & Gas Development Company Limited (OGDCL).