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The Privatisation Commission (PC) has received keen interest from several
reputable parties in response to the recent re-advertisement for proposed sale
of 51 % shares of Pakistan State Oil (PSO) with management control indicating
the confidence of investors in the continued strength and performance of the
Pakistan economy in general and PSO in particular.
PSO is the largest oil marketing company in Pakistan and is engaged in the
storage, distribution and marketing of petroleum products. Currently PSO has
approximately 3,700 retail outlets spread across the country. With an addition
of 209 leased retail outlets, the New Vision network expanded to 1,459 across
the country. For the year ending June 2006, sales revenue was in excess of Rs.
352 billion (US $5.8 billion) and after tax profits amounted to Rs. 7.5
billion (US $123 million). PSO is listed on all three stock exchanges in
Pakistan, and recipient of the Karachi Stock Exchange Top 25 Companies Award
for 18 consecutive years. PSO is rated as “AAA” (Triple A) company by Pakistan
Credit Rating Agency (PACRA).
Parties and groups who have submitted their Statement of Qualifications (SOQs)
and / or reaffirmed their continuing interest, by the due date of 15th January
2007, to participate in the privatization process of PSO include Abraaj
Capital, UAE, Abu Dhabi Group,UAE, Al-Ghurair Investment, UAE, Consortium of
Aljomaih Group Saudi Arabia and Noor Financial Investment, Kuwait and National
Industries Group, Bakri International Energy Systems and Dabbagh Group
Holding, Saudi Arabia, Goldman Sachs (Asia) Finance, Vitol S.A (Switzerland)
and MCB Bank, Fauji Foundation, Attock Group of companies and Kohinoor Group
led by Kohinoor Textiles from Pakistan. In addition some other parties who
indicated their interest but did not submit their SOQ, including the PSO
employee group
It may be recalled that last year Expressions of Interest (“EOI”) were earlier
invited from parties interested in acquiring the indicated shareholding and
management control in PSO, resulting in the receipt of EOIs from various
investors. Those parties who subsequently submitted their Statements of
Qualifications (“SOQ”) in response to the Request for Statement of
Qualifications (“RSOQ”) were allowed to conduct due diligence and provided the
draft transaction documents. Such parties who had already submitted an EOI
along with the requisite processing fee in response to the earlier
advertisement were not required to submit a fresh EOI. However, they were
asked to update any outstanding information / completed SOQ by 15th January
2007. Given the keen interest indicated by investors another opportunity was
given to new investors to join the process. Parties joining the process at
this stage would have to work under a tight schedule as the transaction
formalities have been nearly completed with bidding targeted for March 2007.