KARACHI, April 6: A court on Friday suspended a government order that disqualified Attock Group of Companies from bidding for a 51 per cent stake in the Pakistan State Oil (PSO), the country's top oil marketing firm.
The Sindh High Court made the ruling a day after the Privatisation Commission, the body overseeing the sale of government assets, had confirmed that the Attock Group was ineligible.
The government has said its decision to bar Attock was based, among other things, on its failure to disclose information required to judge eligibility. “We had filed a contempt of court application in the Sindh High Court today, which has suspended the Privatisation Commission's order,” said a senior official of the Attock Group.
The court asked Privatisation Commission board members to attend the next hearing on April 11, according to a copy of the court order, which was made available to Reuters.
The court had asked the commission a week ago to reconsider the disqualification of the group, which owns Pakistan Oilfields Ltd. and several other energy sector firms, from bidding for PSO.
The government's sale of the PSO stake is expected to raise more than $500 million and is scheduled to take place on May 19, but the legal wrangle over Attock's participation could cause a delay, analysts said.
The Attock Group is backed by the Pharaon Group of Companies, whose sponsor is Saudi investor Ghaith R. Pharaon.
The seven parties selected for bidding include consortiums grouping Saudi-based Aljomaih Holding Co. with Kuwait's Noor Financial Investment Co. and Pakistan's Fauji Foundation; Saudi Dabbagh Group Holding with Savola Group and Goldman Sachs (Asia); and Bakri International Energy Systems with Salsal Petroleum.
Pakistan's Kohinoor Group will bid together with Oman Oil Marketing Co.; and MCB Bank will bid with Malaysian oil giant Petronas.
The two other firms on the list are Vitol S. A. of Switzerland and TransAsia Gas International.
PSO shares ended Rs 3.15 down at Rs 360.55 on Friday in a broader market that was up 0.51 per cent.—Reuters
