ISLAMABAD, April 13: The open bidding for the privatization of Kohinoor Oil Mills Limited (KOML) through the sale of up to 60.5 per cent shares on "as is where is" basis will be held on May 4.

According to a handout, the decision to this effect was taken in the final round of the pre-bid conference chaired by Salim Gul, secretary of the Privatization Commission, here on Tuesday.

Ten bidders participated in the pre-bid moot and agreed to start bidding from a floor price of Rs140 or its per share (which is not the reference price) with a minimum increase of Rs5 or its multiple to raise their bids.

The participants were asked to deposit the required earnest money latest by April 30 along with the required documents to become eligible for participation in the open bidding. Representatives of the print and electronic media will be invited to witness the process.

The interested parties visited the company and had completed the due diligence process with necessary assistance from the Ghee Corporation of Pakistan. The liabilities owed to the government up to the date of transfer of this transaction will not be passed on to the successful buyer.

The government intends to sell 60.5 per cent (316,969) shares of KOML, while the remaining shares are with other private individuals and institutions. KOML is situated on a land measuring approximately 62.2 acres on main GT Road, Kala ShahKaku, tehsil Ferozewala, district Sheikhupura. It was converted into public limited company in 1971 and nationalized in September 1973. All employees of the unit were paid VSS/GHS in 1997.

The mill's vegetable ghee plant has a capacity to produce 27,200 tons of ghee, while the solvent extraction plant has annual rated capacity of 33,000 tons. Unlike other ghee mills, this unit also has seed handling and crushing equipment as well as solvent extraction plant.