ISLAMABAD, April 20: The Privatisation Commission received on Thursday Rs5.420 billion or 25 per cent of the total bid price from the buyer of the Pakistan Steel Mills Corporation (PSMC).

According to a PC handout the buyer was required to deposit 25pc of the bid amount within 20 days after it was issued letter of acceptance and the remaining amount in 60 days for acquiring 75 per cent strategic stake (1,290,487,25 shares) of the corporation.

The highest offer of Rs16.80 per share making a total of Rs21.680 billion ($362 million) was offered by the consortium of Magnitogorsk Iron and Steel Works (Russia), Tuwairqi Steel Mills (Saudi Arabia) and Arif Habib Securities.

The Cabinet Committee on Privatisation (CCoP) had authorised the PC to issue Letter of Acceptance (LoC) to the successful bidder whose offer was within the acceptable range.

The bidding determined the value of Pakistan Steel Mills (100 per cent assets) to $482 million. Out of 19,000 acres of the land of PSMC around 14,500 acres worth about $800 million has been separated from the transaction, which would be used by the government for appropriate project.

Pakistan Steel is the largest and only integrated steel manufacturing plant of the country, with an annual designed production capacity of 1.1 million tons. It was incorporated as a private limited company in 1968 and commenced full-scale commercial operations in 1984.

PSMC complex includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom and slab casters, billet mill, hot and cold rolling mills, galvanizing unit and 165 MW of own power generation units, supported by various other ancillary units.