January 23, 2008	Wednesday	Muharram 13, 1429

KARACHI, Jan 22: Bosicor Pakistan Limited (BPL) announced on Tuesday that it was in talks with certain parties which eventually would result in passing over of the majority stake in the refinery to Abraaj Mauritius Oil and Gas SPV Limited and Byco Industries Incorporated, both incorporated in Mauritius.

The notice read out at the Karachi Stock Exchange on Tuesday contained a maze of transactions, but the eventual change of hands of the controlling stake, validates Dawn’s story of Dec 13, 2007 that Abraaj was eyeing Bosicor.

The refinery stated that following the takeover of 55.17 per cent shares, the purchaser would also launch a Mandatory Tender Offer (MTO) for acquisition of not less than 5 per cent of the minority shares of Bosicor Pakistan Limited under the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002 “to be funded by Abraaj”.

And that the offer price in relation to the acquisition of shares from minority shareholders would be determined by Abraaj at the time of launching the MTO.

In response to Dawn queries, chairman of Bosicor Amir Abbassciy said that minority shareholders’ interest would be held ‘supreme’ in arriving at the offer price. “We have always considered small shareholders as of paramount importance and would do so in this transaction as well,” he says.

Mr Abbassciy was glad that his company was able to attract foreign investment in the country even in these trying times.

To return to the notice itself, the BPL stated that certain transactions were being contemplated in respect of BPL and the refinery’s associated companies Bosicor Chemicals Pakistan Limited (BCPL) and Bosicor Oil Pakistan Limited (BOPL). “In this regard, Bosicor Corporation Ltd (BCL) has executed a LoI dated January 20, with Abraaj Mauritius Oil and Gas SPV Limited and BYCO Industries Incorporated (BII).

BCL, beneficially owns 55.17pc of the total issued share capital of BPL, the notice by Bosicor states: “We are informed by the parties of the following investment transactions in relation to BPL, BCPL and BOPL: The shares of BPL owned by BCL would be transferred to BII (in a share swap) in exchange for shares of BII on a one-for-one basis. BII shall also launch MTO to be funded by Abraaj.

Abraaj would be issued shares in BII in exchange for BPL shares acquired by BII through MTO on one-for-one basis.

BCPL and BOPL would both turn into wholly owned subsidiaries of BIL. “Abraaj would be investing in BCPL and BOPL through BII”. The refinery stated that the consummation of the proposed transaction would be subject to certain formalities including clearance from the Competition Commission of Pakistan.

The notice concluded on that note. But to add more, it may be observed that Bosicor — the country’s fifth oil refinery — is located on the coastline of the Arabian Sea.

To augment revenues, the refinery has been cherishing plans of commissioning 50 petrol pumps by end June 2008; revamping crude distillation plant and to build 11 storage tanks with 125,000 tons capacity.

The refinery scarcely has an impressive record of performance, when compared to its peers. It would be interesting to see if the new foreign owners are, in time, able to spark flames and post a refined figure on the bottom line.