ISLAMABAD, July 31: The Privatization Commission here on Wednesday entered into sale agreements with two successful bidders for the sale of 100 per cent shares of E.M. Oil Mills and Industries Limited and acquisition of 61.8 per cent shares of Maqbool Company Limited.

The Privatization Commission had received highest offers during an open bidding for these units in April this year, of Rs94.054 million for 1,939,276 shares at Rs48.50 per share from Star Cotton Corp (Pvt) Ltd and Rs27.584 million for 270,435 shares at Rs102 per share from Madina Enterprises, making a total of Rs121.639 million for both the units.

According to a Privatization Commission announcement, the sell-off of these closed units would provide job opportunities and generate taxes for the government, after their re-opening by the successful bidders. The government has so far revived 145 units.

These units were transferred to the successful bidders free from liabilities pertaining to the government of Pakistan loans, amounts due to Ghee Corporation of Pakistan (GCP) and existing liabilities of the CBR, after approval from the PC Board and the Cabinet Committee on Privatization (CCoP).

Eight parties submitted EoIs for E.M. Oil Mills and Industries Limited, while four parties expressed their interest for Maqbool Company Limited. E.M. Oil Mills is an unlisted public limited company, 100 per cent owned by the GCP. The unit is located at a leased plot No. E-3 Estate Avenue, SITE, Karachi, measuring 4.22 acres. The lease will expire in 2052. The unit has an annual capacity of 32,000 tons. The factory possesses all necessary infrastructure facilities.

Maqbool Company Limited is a public listed company quoted on the Karachi Stock Exchange. The GCP holds 61.8 per cent, while the rest are held by general public and other institutions. The unit is located at plot No. D-5 South Avenue, SITE, Manghopir road, Karachi, measuring 3.36 acres, leased for 99 years to be expired in 2050. The unit has an annual capacity of 12,500 tones. It is also equipped with all necessary infrastructure facilities.

The Privatization Commission had invited EoIs from prospective bidders for sale in February this year.

The Edible Oil Industry of Pakistan comprises on over 150 units with a total installed capacity of 2.7 million tons per annum, which is in excess of the requirement of 1.4 million tons calculated on the basis of the use of imported and indigenous edible oils.

According to Expert Advisory Cell’s bulletin, the total investment in this sector is Rs7.20 billion with manpower of 37,700. Tax and duties being paid on annual basis by this industry is Rs25 billion.

The representatives of the successful bidders for each unit and Major General (retd) Muhammad Mohsin, Chairman, GCP, signed the final handing over documents in the presence of Altaf M. Saleem, Minister for Privatization and senior officials of the Ministry of Industries and Privatization Commission.