Five Foreign Investors Pre-Qualified For Pakistan Steel Sale-Off
ISLAMABAD, Jan 18 Asia Pulse - A pre-bid conference for the privatization of Pakistan Steel Mills Corporation (
PSMC) was held here on January 16. The five pre-qualified bidders, who attended the conference, were informed that they would have to deposit US$30 million four days before the bidding to become eligible to participate in the process.
During the Monday's meeting, the bidders were assured that the whole process of the mills' privatization would be completed by January 31, 2006 and that there would be no delay in it.
The bidding process would comprise of two rounds. In the first round, sealed bids will be dropped in the transparent bid box, which will be opened and read over by the representatives of print and electronic media, while in the second open bid round, the three highest bidders will be asked to compete.
The successful bidder will be required to deposit 25 per cent of the bid price within 20 days after the issuance of letter of acceptance (LoA). For the remaining amount 60 days will be given from the date of issuance of LoA.
The Privatization Commission has offered to qualified strategic investors interested for acquiring 75 per cent equity stake in Pakistan Steel Mills Corporation (Pvt) Ltd, or the company, together with management control on an "as is, where is" basis. A consortium led by Citigroup Global Markets Limited is advising the Privatization Commission on the sale.
Dr Abdul Hafeez Shaikh, Minister for Privatization and Investment, said on the occasion that all stakeholders were working together for satisfactory closure of Pakistan Steel transaction by January 31, 2006, which was very important transaction for the government.
The five pre-qualified parties, which participated in the pre-bid conference, included:
• Al-Tuwairqi Group of Companies (Saudi Arabia)
• Arif Habib Group of Companies (Pakistan)
• Government of Ras Al Khaimah (UAE)
• International Industries Ltd (Pakistan)
• Industrial Union of Donbass (Ukraine)
• Magnitogorsk Iron & Steel Works Open JSC (Russia)
• Noor Financial Investment Company (Kuwait)
http://au.news.yahoo.com/060118/3/xmw4.html