September 8, 2002	Sunday	Jamadi-us-Saani29,1423

ISLAMABAD, Sept 7: The Privatization Commission received on Saturday a highest offer of Rs696.431 million at the rate of Rs9.70 per share for the sale of 90 per cent shares of Thatta Cement Company Limited (TCCL).

The bid was offered on ‘as is where is’ basis, which also included Rs383 million loan liabilities and 50 per cent of GHS/VHS to be paid to the employees by the buyer which is around Rs45 million.

According to an official announcement, the offer makes the total of over Rs1 billion. Iqbal Alimohammad & Consortium gave the highest offer in an open bidding. Muhammad Afzal Khan, Member PC Board who is also the Chairman OGDCL, supervised the bidding process.

The highest bidder has been asked to improve their bid within the next three days for the consideration and recommendation of PC Board and subsequent decision by the Cabinet Committee on Privatization.

Ten per cent shares i.e. 7.79 million shares of the company will be offered to the employees and in case they show no interest then the same will be offered to the highest bidder on the bid rate, which will further raise the proceeds.

The parties, which took part in the bidding, were Lucky Cement Limited; Kohat Cement Company Limited; Iqbal Alimohammad & Consortium; and Vijaint Kumar Chawla, Chawla International.

The PC had invited Expressions of Interest (EoIs) from prospective investors, business houses etc., in July 2002. A pre-bid conference was organized on Wednesday for responding to the queries of the bidders and for a better understanding of the process and the transaction.

Thatta Cement Company Ltd was incorporated in 1980 as a limited company under Companies Ordinance 1913 (now Companies Ordinance 1984) and is a wholly owned subsidiary of the State Cement Corporation of Pakistan (pvt) Limited (SCCP). The unit is located at 115-km in the North East of Karachi at Makli Ghulamullah Road, District Thatta.

The plant is based on dry technology and has a capacity of 1,000 tons per day production. The entire plant and machinery was imported from Mitsubishi Corporation Japan while the slag- grinding mill has been supplied by HMC. The plant started commercial production in December 1982 and is fully operative. Its main products include Ordinary Portland Cement, Slag Cement and Sulphate Resistant Cement while Lime Stone, Clay/Shale, Iron Ore, Gypsum and Slag are the inputs/ raw material. The unit is located on 236 acres consists of factory, officer and workers colonies complete with all facilities along with 4,725 acres of mining lease (Quarry).