Steel Mills transaction structure for privatisation approved

Published December 11, 2020
IN this Feb 7, 2016 photo, a man walks past machines at the hot strip mill department of the PSM. Curtailment of natural gas supply led to closure of the country’s largest industrial unit in June 2015..—Reuters
IN this Feb 7, 2016 photo, a man walks past machines at the hot strip mill department of the PSM. Curtailment of natural gas supply led to closure of the country’s largest industrial unit in June 2015..—Reuters

ISLAMABAD: The Privatisation Commission (PC) on Thursday approved transaction structure for the privatisation of the Pakistan Steel Mills (PSM) and decided to present it to the Cabinet Committee on Privatisation (CCoP) for approval.

The meeting discussed the PSM’s privatisation structure in a holistic manner and was chaired by Privatisation Minister Mohammadmian Soomro.

The meeting was also attended by industries minister, board of investment chairman, privatisation and finance secretaries, financial advisers, adviser to PM on institutional reforms and special assistants to prime minister.

Earlier, the Islamabad High Court had ruled that advisers and special assistants cannot head government’s committees. Subsequently, the government will now re-constitute the CCoP to include elected representatives as members of the committee as well as its chairman.

An elected representative will likely replace Abdul Hafeez Shaikh as chairman since Mr Shaikh currently holds the portfolio as an adviser.

Under the transaction structure approved by the PC, majority of the shares of the PSM will be divested. Modalities in this connection will be decided once the structure is approved by the CCoP, official sources told Dawn.

Meanwhile, it was agreed that a new company will be floated which will hold 1,200 acres of land of the PSM. Currently, the PSM spreads on 18,600 acres of land. The remaining land will be held by the state.

In September this year, the PC board had approved the transaction structure for the revival of the PSM which has not been operational since June 2015.

On Nov 28, the government laid off over 4,500 PSM employees following an emergency meeting chai­red by the mill’s chief executive officer (CEO) at the CEO Secretariat.

The PSM was one of the premier state-owned enterprises which started commercial operations in the early eighties and played a pivotal role in the country’s economy when it became fully operational.

The transaction structure was agreed in principle and financial adviser was asked to move ahead with procedural follow up processes expeditiously. The PC after conducting due process appointed Pak China Investment Company and BOC International as joint lead financial advisers.

As per the available information, the financial adviser has proposed options including sale of majority shares to the newly-formed company or transferring identified core operating assets to private sector strategic partner by entering into lease agreement for a longer period.

Published in Dawn, December 11th, 2020

Opinion

Press and power
25 Sep 2021

Press and power

None used the press so brazenly as the Modi government.
Once upon a Taliban
Updated 25 Sep 2021

Once upon a Taliban

Something, somewhere is terribly wrong with how this story is unfolding.
Foundation of healthcare
24 Sep 2021

Foundation of healthcare

Primary healthcare is as much for healthy individuals as it for those suffering from ill health.

Editorial

25 Sep 2021

NAB controversy

THE completion of the four-year term of NAB chairman Javed Iqbal early next month has afforded Prime Minister Imran...
Cabinet ‘inclusivity’
Updated 25 Sep 2021

Cabinet ‘inclusivity’

Voices are being raised questioning when the much-hyped inclusivity the group had talked about will materialise.
25 Sep 2021

Quorum malady

LACK of quorum has become a chronic problem for the present National Assembly which is in the process of becoming a...
24 Sep 2021

Costs of growth

IS Pakistan’s growth party over? Not yet. But both the State Bank and government are now cutting down on the items...
Smear campaign
Updated 24 Sep 2021

Smear campaign

It is commendable that the government has taken the matter as seriously as it has, and delved deep into cyber investigations.
24 Sep 2021

Rising dengue cases

THE dengue monster is once again rearing its head in different cities of Punjab. More than 820 cases have surfaced ...