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PC approves 12 bidders in PSO sell-off


KARACHI (updated on: January 17, 2007, 19:56 PST): The Privatisation Commission (PC) approved a dozen bidders in the privatisation of Pakistan State Oil (PSO), the country's top oil marketing firm.

It said bidding for a 51 percent stake, with management control, was expected to take place in March, without giving a specific date.

Privatisation of PSO, which controls almost 65 percent of the country's petroleum marketing business, has been postponed repeatedly because of lukewarm interest from buyers.

PSO's main rivals are Shell Pakistan and Caltex Pakistan.

The PC said in a statement on Wednesday the bidders included Abraaj Capital, Abu Dhabi Group, Al-Ghurair Investment - all from the United Arab Emirates - a consortium grouping Saudi-based Aljomaih Group and Kuwait's Noor Financial Investment; Bakri International Energy Systems, Dabbagh Group Holding of Saudi Arabia, Goldman Sachs (Asia) Finance and Vitol S.A. of Switzerland.

Local firms qualified for bidding were are MCB Bank, Fauji Foundation, Attock Group of Companies and the Kohinoor Group, which is led by Kohinoor Textile.

US investment firm J.P. Morgan is the financial adviser for the sale.

"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," the commission said.




Copyright Reuters, 2007







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PC receives EOI from 12 parties for privatization of PSO


Updated at 2025 PST


ISLAMABAD: 12 parties submitted Wednesday Statement of Qualifications (SOQs) with the Privatization Commission (PC) in response to the recent re-advertisement for proposed sale of 51 % shares of Pakistan State Oil (PSO) with management control.

The PC in a statement here Wednesday said, the keen interest from many parties was 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 disengaged 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.

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, Kingdom of Saudi Arabia, 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 afresh 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.