ISLAMABAD, June 21: The Privatization Commission on Tuesday received Rs4.104 billion as first instalment of the total offer of Rs16.415 billion for the strategic sale of National Refinery Limited.

Shuaib A. Malik, authorized representative of the Attock Oil Group of Companies, handed over a pay order of Rs4.104 billion to Dr Abdul Hafeez Shaikh, Minister for Privatization and Investment.

A handout issued here said the bidding for NRL was held on May 31, and the Cabinet Committee on Privatization approved the offer on June 7 for the sale of 51 per cent (33,985,788 shares) equity stake in NRL, together with the transfer of management control to the Attock Oil Group.

As per the sale agreement, the buyer will deposit the remaining 75 per cent amount within 60 days after the issuance of letter of acceptance. The group is required to make the final payment by August 6, 2005. However, the buyer has indicated that it will make the remaining payment during July 2005.

Three pre-qualified bidders — Attock Oil Group, Crescent Steel and Allied Products and Shakarganj Mills Limited and Fauji Foundation Consortium — had become eligible for the bidding after depositing Rs300 million each as earnest money by the due date.

The Attock Oil Group submitted the highest offer of Rs483 per share and total value of Rs16.415 billion. Crescent Steel and Allied Products and Shakarganj Mills Limited was ranked second with an offer of Rs260 per share (total bid value of Rs8.836 billion), while Fauji Foundation Consortium remained third with an offer of Rs197 per share and a total bid value of Rs6.695 billion.

The privatization minister on the occasion expressed the hope that the transaction of NRL would improve its operational performance after handing over to the private sector.

The Privatization Commission engaged Citigroup Global Markets Limited of the UK in April last year to provide financial advisory services for the privatization of NRL. The commission received 29 EoIs for NRL, while 16 parties submitted their requests for statement of qualification. Among them 11 parties were pre-qualified for conducting due diligence, while three parties finally decided to participate in the bidding.