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The government is considering the privatisation of public sector entities
through Public Private Partnership instead of the out right sale of State
Owned Entities (SOE). Syed Naveed Qamar Federal Minister for Privatisation
stated while addressing the signing of Share Purchase Agreement (SPA) and
handing over ceremony of Hazara Phosphate & Fertilizers (Pvt) Limited (HPFL)
here today.
He said that there was no haste in the privatisation of public sector entities
and all stakeholders would be taken on board prior to taking the transactions
to the market. The privatisation process would be taken ahead while keeping in
view the market conditions, he added.
Referring to the privatisation of HPFL Syed Naveed Qamar hoped that the
transparent and open process of HPFL privatisation would further restore the
investors confidence and the new management of HPFL would bring in fresh
investment to expand the operation and to increase the production of
fertilizers, which would help in saving the Foreign Exchange reserves being
spent for import of UREA/ DAP to meet the demand.
The Minister further stated that standard SPA was being followed by the
Privatisation Commission since 1991 and the employees were free to voluntarily
exercise the GHS/VSS offer as being practiced earlier. Golden Handshake Scheme
(GHS) and Voluntary Separation Scheme (VSS) have been offered to the permanent
workers and executives of HPFL.
Mr. Ahmed Shaikh CEO AZGARD-9, on behalf of Pak American Fertilizers Limited,
lauded the privatisation process and said that the Privatisation Commission
conducted the transaction in a highly professional manner. There was a vast
scope to chalk out plan for further expansion in its operation and to increase
the production. We would retain the workforce on merit, he added.
Earlier, Mr. Ahmed Jawad Secretary Privatisation Commission, Mr. Muhammad
Khalid Malik Chairman National Fertilizers Commission (NFC) and Mr. Ahmed
Shaikh of PAFL signed the Share Purchase Agreement (SPA) on behalf of their
respective organizations after receiving the final payment of remaining 75 %
Rs. 965. 018 million of bid price and 50 % share of GHS/VSS of Rs.45.040/-
million and the formal handing over of HPFL took place in the presence of the
Minister and the media representatives.
The Privatisation Commission had already received 25 % sale price (i.e. Rs.
335.006 million) for the sale of Hazara Phosphate & Fertilizers Limited (HPFL)
within the stipulated time from the successful bidder Pak American Fertilizers
Limited (PAFL) as per terms of the Letter Of Acceptance (LoA).
Consequent to the approval by the Cabinet Committee on Privatisation (CCOP) on
September 29, 2008 of the highest bid of Rs.70/= per share (Total:
Rs.1,340,024,490/= for 100 % shares) and declaration of Pak American
Fertilizers Limited (PAFL) as the successful bidder, Letter of Acceptance (LoA)
was issued on September 30, 2008.
The Privatisation Commission received the highest offer of Rs.1. 34 billion
(Rs.1, 340,024,490/-) from Pak American Fertilizers Limited at the rate of
Rs.70 per share for 100 % shares during an open bidding held on September 25,
2008 for the sale of minimum of 90% shares of Hazara Phosphate Fertilizers
(Private) Limited (HPFL) together with management control on ʽas is where isʼ
basis through an open bidding process among the pre-qualified parties.