http://www.brecorder.com/index.php?id=3971...&term=&supDate=



Pakistan Steel sell-off by month-end

ARIF RANA

ISLAMABAD (March 13 2006): The Cabinet Committee on Privatisation (CCoP) has fixed March 31, as a final deadline for Pakistan Steel Mills Corporation (PSMC) sell-off and directed the Privatisation Commission authorities to complete the transaction without further delay.

The committee also fixed the deadline of March 27, for short-listed parties to deposit $30 million as earnest money to secure participation in the bidding.

Sources told Business Recorder on Sunday that CCoP, which met on March 11, with Prime Minister Shaukat Aziz in the chair, was given a detailed presentation by the Privatisation Commission officials on PSMC sell-off plan. The meeting was told that the Privatisation Commission has completed all the formalities to offer the industrial unit for privatisation.

It was also informed that five parties have been short-listed for PSMC sell-off. These were Al-Tuwairqi Group of Companies, Kingdom of Saudi Arabia with Arif Habib Group of Companies, Pakistan; Government of Ras Al Khaimah (UAE); International Industries Ltd (Pakistan) and Industrial Union of Donbass (Ukraine); Magnitogorsk Iron & Steel Works Open JSC Russia and Noor Financial Investment Company of Kuwait.

After ECC approval, the Pakistan Steel Mills Corporation's (PSMC) sell-off was delayed some two weeks for the second time. The ECC had granted Privatisation Commission extra time to sort out controversial issues.

Earlier, March 10, was the deadline for the mills' bidding. Its first-ever-bidding schedule was issued in February.

Sources said the major issues that delayed PSMC privatisation included transfer of unutilised land and controversial employees' package.

Sources said the federal government had approached to the Sindh government for transfer of 4500 acres of the mills' land to make it the part of the bid document. However, the remaining 15000 acres land would be utilised for promotion of industrial activities in the province.

The officials of the Privatisation Commission have held a series of meetings with all the stakeholders including the government of Sindh, employees of the mills and CBR authorities to ensure smooth sale of this prime state-owned industrial unit.

They somehow have managed to bring all the parties close to an understanding and make them feel that opposition to PSMC sell-off was not in the interest of any one of them.


Copyright Business Recorder, 2006

well thank god. finally.

http://www.brecorder.com/index.php?id=4034...&term=&supDate=


Two consortiums deposit earnest money to bid for PSMC

ARIF RANA


ISLAMABAD (March 28 2006): Two consortiums have deposited earnest money ($30 million each) to bid for 51 percent shares in Pakistan Steel Mills Corporation (PSMC) on March 31.

These include the consortium of Al-Tawairqi Group of Companies of Saudi Arabia with Arif Habib Group of Companies and Industrial Union of Donbass (Ukraine) and the consortium comprising Al-Noor Financial Investment Company of Kuwait, Government of Ras Al-Khaimah (UAE) and Magnitogorsk Iron & Steel Works Open JSK (Russia).

These parties were short-listed by Privatisation Commission to reserve seat for bidding. However, with the exception of one group all others emerged into two consortiums.

Sources said that both consortiums have conveyed to the Privatisation Commission, in writing, about their formation, number of parties in each case and their shares. They said that the privatisation laws allow any group to join other group and form a consortium before formal opening of the floor for bidding.

The Privatisation Commission has fixed PSMC bidding for March 31.

An official of Privatisation Commission told Business Recorder Monday that PSMC sell-off plan was heading towards a logical conclusion. He said: "A team of prominent lawyers would defend PSMC sell-off before the SHC on Tuesday".

According to the official, prominent lawyer and constitutional expert Khalid Anwar would appear before the court on behalf of the government. His engagement for legal battle is indicative of the government's degree of seriousness in PSMC case.

However, all would depend on the outcome of Sindh High Court's (SHC) proceedings.


Copyright Business Recorder, 2006

its a very good thing that government is sell these assets becoz if they become unsufficient that government has to spend money on them and now if a private firm controls it than no pressure on our government and budget that money can be spend somewhere else... but y is government selling only 51% is it in first phase or dats wat they selling i think government shud fully get rid of these assets.... also i think dat alwlays catching eyes is that UAE and SUADI governments are investing heavily i mean they always bid for priviatization....
but im vary abt russian bid the government shudnt allow them to get control of it...but it does show the change in attitude in russia especailly their business community has some interest in pakistan...

http://www.jang.com.pk/thenews/index.html



Pakistan Steel Mills sold for $362 mln at auction


(Updated at 1850 PST)


ISLAMABAD: A Russian-Saudi-Pakistani consortium made a winning bid of $362 million for a 75 percent stake in Pakistan Steel Mills on Friday at an open auction that marked the latest step in government's privatisation programme.

The consortium of Russia's Magnitogorsk Iron & Steel Works Open JSC , Saudi Arabia-based Al-Tuwairqi Group of Companies and local firm Arif Habib Securities paid a total 21.6 billion rupees, or 16.8 rupees per share, to take control of Pakistan's only integrated steel manufacturing plant.

A second consortium in the two-horse race made a bid of 16.5 rupees per share before dropping out of the bidding. The losing consortium included Al-Jomaih Holdings of Saudi Arabia, the Emirates' government of Ras Al-Khaimah, Kuwait-based Noor Financial Investment Co and Ukraine-based Industrial Union of Donbass.

http://www.brecorder.com/


Pakistan Steel sell-off fetches $362 million


ISLAMABAD (updated on: March 31, 2006, 19:58 PST): A Russian-Saudi-Pakistani consortium made a winning bid on Friday of $362 million for a 75 percent stake in Pakistan Steel Mills at an open auction that marked the latest step in country's privatisation programme.

The consortium of Russia's Magnitogorsk Iron & Steel Works Open JSC (MMK), Saudi Arabia-based Al-Tuwairqi Group of Cos. and local firm Arif Habib Securities paid a total 21.6 billion rupees, or 16.8 rupees per share, to take control of Pakistan's only integrated steel manufacturing plant.

"The price is within the range approved by the CCoP (Cabinet Committee on Privatisation), and that's why we announced today the issuance of the letter of acceptance," Awais Khan Laghari, Pakistan's newly-appointed Minister for Privatisation, told journalists after the auction held here in a hotel.

Pakistan's privatisation programme has gone far from smoothly recently.

The government has had to abort several recent privatisations. The biggest, A $2.6 billion sale of a controlling 26 percent stake in Pakistan Telecommunication Co. Ltd., was renegotiated after Emirates Telecommunications Corp. (ETISALAT) said it needed more time to pay.

The Pakistan Steel plant was built by the Soviet Union, and industry officials say it will need significant investment to become more competitive.

Located some 30 km (19 miles) south-east of Karachi, Pakistan Steel Mills has an annual designed production capacity of 1.1 million tonnes.

"We have already a steel mill in Pakistan and with Pakistani Steel Mills, we'll be able now to fulfil our vision and enhance the Pakistan Steel Mills production to 3 million tonnes and ours to 1 million tonnes," Mohammed Tariq Barlas, vice chairman of the al-Tuwairqi group, told journalists.

Zaigham Adil Rizvi, a director of the al Tuwairqi group, said raising Pakistan Steel Mills capacity would require a total investment of around $300 million.

The three partners in the consortium are expected to each pay a third of the price for the stake-holding, according to Standard and Poor's Ratings Services.

S&P issued a statement saying the Russian firm MMK's "fair credit metrics" were unlikely to be weakened by its participation in the bid.

The second consortium in the two-horse race made a bid of 16.5 rupees per share before dropping out of the bidding.

The losing consortium included Al-Jomaih Holdings of Saudi Arabia, the Emirates' government of Ras Al-Khaimah, Kuwait-based Noor Financial Investment Co. and Ukraine-based Industrial Union of Donbass.

Bidding had begun at 10.17 rupees per share.


Copyright Reuters, 2006

Does GoP still hold 25% then?

yep, the Pakistan govt also retains a percentage of Pakistan telecom. Probably to make use of any rise in value after the private sector turns the companies into bigger and better businesses.

http://www.brecorder.com/


CCoP approves Pakistan Steel sell-off


ISLAMABAD (updated on: March 31, 2006, 21:42 PST): The Cabinet Committee on Privatisation (CCoP), here on Friday approved the privatisation of Pakistan Steel Mills Corporation. The Privatisation Commission was also authorised to issue Letter of Acceptance to the successful bidder.

The CCoP, which met under the chairmanship of Prime Minister, approved the proposal of the Privatisation Commission to cancel the Letter of Acceptance of M/s Ibrahim Fiber, who had failed to fulfil the obligations for purchase of Pak American Fertiliser Ltd.

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 Fertilizer Ltd. 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 GDR of OGDC.


Copyright APP (Associated Press of Pakistan), 2006

is it me or the sun came out of the wrong side.

russians are buying our millis. why would they be interested in our mills i would have thought they had their own mills on the plenty specially since uncle Joe mad sure there was higher production in the twenties and onwards.

Is it me or every one just missed the point that the biggest industrial complex of Pakistan was only sold off for nothing...
Have u even seen whats inside that complex. I know coz my family is in steel production business for 5 decades. Come on Man!! this money is too low..

no, actually its not. the privatization commission is not full of a bunch of uneducated illiterates who would allow PS to be sold for an amount less than what its worth. $362 million dollars is a lot of money for a company that not too long ago was in the red. PS had become an elephant for the government. it was only because of abdul qayyum, its managing director and CE for the last three years i believe, that the steel mills became profitable again. this is a lot of money. and it will serve the purpose of privatizing the company well. this new group will have to invest a lot into the company and the country to get its goal of 3 million tonnes of steel production. this can only be good for the country.

[/quote]Is it me or every one just missed the point that the biggest industrial complex of Pakistan was only sold off for nothing...
Have u even seen whats inside that complex. I know coz my family is in steel production business for 5 decades. Come on Man!! this money is too low.. [quote]


working out the value of state assets is a complex thing and investment banks who specialise in this were involved in the process to oversee the privatisation process. it sold for what it was worth and thats that.
furthermore, the mill needs an investment of $300 million which this consortium will also pay for so in essence the whole deal is worth around $650 million. Not bad is it for an organisation that was going nowhere?


now we will see investment, technical expertise, increased production and an additional 3000 jobs created.

Dont ya worry pal. 362 Million $ = 21.7 Billion Rs.

I dont know how huge your personal business is, (maybe u r a Billionare urself) but 21.7 Billion Rs is a huge business in Pakistan.

I agree with Wiseking on the matter that the privitization guys would not let things go cheap. They will privitize the companies at the current international going rates. Just look at PTCL, it went for ovr 2 Billion $ didn't it?

My bad i was including all of real estate in it as well and i once met an official of PSM and OGDC those guys were telling my DAD that the scrap iron currently present on the premises are worth over 100 million dollars.
But the plus point is its been sold, and may be now the corruption and blackmarket will be put on hold for good.

My bad i was including all of real estate in it as well and i once met an official of PSM and OGDC those guys were telling my DAD that the scrap iron currently present on the premises are worth over 100 million dollars.
But the plus point is its been sold, and may be now the corruption and blackmarket will be put on hold for good.

Firstly the scrap which you are talking about has already been cleaned and nearly 100% of out put was acheived since last 4 years.

Secondly the plant's had already aged and multi-million dollar was required. Not to mention GOP tried very hard but individuals were taking them for a ride for upgradation and bringing in new technology to the existing plant.

You must realize that the new owners are already using and are involved in Steel Mill plants, hence, for them it is very easy to get the upgradation done by one of their existing suppliers. Hence, the supplier is not supplying like Pakistan a single plant owner but it is supplying to a company which has already 3 to 4 plans operational !

Last but not the least .. in the above deal PS real estate section was seperated, which means unused area of Pakistan steel has been seperated and is owned seperately or by GOP now.

http://www.dawn.com/2006/05/16/ebr6.htm


Pakistan Steel pays off Rs7.7bn debt

KARACHI, May 15: The Pakistan Steel held a cheque presentation ceremony in which a debt worth Rs7.7 billion, scheduled to be paid from year 2013 to 2020, was paid much ahead of time, says a press release.

Addressing the ceremony Chairman Pakistan Steel Lt. Gen Abdul Qayyum said that despite the challenges of the unprecedented nature created by the sudden collapse of coke oven and bye product plant, shortage of raw material, abnormal increase in prices of imported coal and iron ore, the PS workforce stood like a rock and the management had cleared every penny of its debt.

The cheques were received by Zakir Mahmud, president Habib Bank Limited (Rs1.941 billion); Aftab Manzoor, president Muslim Commercial Bank (Rs1.165 billion); Shahid Anwar, senior executive vice president National Bank of Pakistan (Rs1.942 billion); Hasan Raza, executive vice president United Bank Limited (Rs1.942 billion); and Junaid Alam, senior vice president Allied Bank Limited (Rs0.777 billion).