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ISLAMABAD, Feb 28: Ibrahim Fibres Limited of Faisalabad made the highest offer of Rs19.99 billion in the bidding for Pak American Fertilizers Limited (PAFL) held in Karachi on Tuesday.
Privatization Commission sources told Dawn that Ibarhim Fibres offered Rs667 per share for 30 million shares of PAFL.
Jahangir Siddiqui Capital Markets Ltd, Karachi (AZGARD-9), offered the second highest price of Rs16.11 billion at a rate of Rs537 per share; Kohinoor Textile Mills Ltd and Associates, Lahore, Rs13.59 billion at Rs453 per share; Nishat (Chunian) Ltd, Lahore, Rs13.35 billion at Rs451 per share; and Pak Arab Fertilizes (Pvt) Ltd, Multan, offered a price of Rs11.124 billion at Rs371 per share.
Bidders dropped their sealed bids in a transparent box which marked the first round of bidding. Privatization and Investment Minister Dr Abdul Hafeez Sheikh watched the proceedings. Privatization Secretary Tehseen Khan Iqbal was also present on the occasion. The bids were opened and read over by the representatives of print and electronic media.
The second round was held for an open auction among the top three contenders, but no bidder made an offer against the highest bid.
The results of the bidding will now be considered by the Privatization Commission Board to formulate its recommendations for a decision.
Dr Hafeez on the occasion said the letter of acceptance (LoA) would be issued to the highest bidder after necessary approvals. The bidder will deposit 25 per cent proceeds within 14 days and the remaining 75 per cent in 60 days after the issuance of LoA.
PAFL was the first fertilizer manufacturing concern to be built in Pakistan. It was established in 1959. It produces 1,050 tons of urea per day. PAFL is a subsidiary of National Fertilizer Corporation of Pakistan. The company possesses over 11,481 kanals of land, comprising 6,432 for factory, 2,818 for housing colony and 2,230 kanals for experimental farm.
APP adds: Earlier, the privatization secretary pointed out that all the five bidders had deposited Rs350 million as earnest money with the Privatization Commission.
Talking to reporters, Dr Hafeez said that the bidding was successfully completed in a befitting manner and Ibrahim Fibre offered the price higher than the reference price. It was a good event, he added.
He said the Privatization Commission would submit this bid to the Cabinet Committee on Privatization for approval.
Ibrahim Fibre chief executive officer Mohammad Naeem Mukhtar said that his company would run the plant on modern lines and upgrade its operation.
“We are also planning to expand this plant in the next 12 months to increase production,” he added.
