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Faletti's Hotel deal signing today

February 24, 2005

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ISLAMABAD, Feb 23: Privatization and Investment Minister Dr Abdul Hafeez Shaikh will preside over the signing ceremony of the conveyance deeds, share purchase agreement of Faletti's Hotel at the Privatization Commission here on Feb 24.

The highest bid of Rs1,211.1 million by 4 B Marketing was approved by the Cabinet Committee on Privatization (CCoP) on May 31, 2004, and the Privatization Commission had issued a letter of acceptance to the successful bidder on June 2, 2004. The payment of the sale price by 4 B Marketing was made on July 2, 2004.

The commission initiated the process of privatization of Faletti's Hotel on August 21, 1997. An agency agreement was made on January 9, 1998 between Associated Hotels of Pakistan (AHP), a public limited company incorporated in 1961, and the ministry of finance, acting for and on behalf of the government of Pakistan through the Privatization Commission.

By the agreement, AHP appointed the Privatization Commission as the agent to market, advertise and sell Cecil's, Deans and Faletti's Hotel. The PTDC holds 86.8 per cent shares of the three hotels while private investors hold the remaining.

The bidding for Faletti's Hotel was held twice in 1998 and 2002. All these attempts failed on account of lower bids. The Privatization Commission in December 2003 reinitiated the process and the hotel was brought up for bidding for the third time'.