ISLAMABAD, July 25: The Privatization Commission has postponed the bidding for Thatta Cement Company Limited (TCCL) scheduled on July 26 on the request of prospective bidders.
According to a PC statement issued here on Friday, new schedule for the bidding would be announced shortly. The Privatization Commission had received seven expressions of interest (EoIs) from the interested parties for the purchase of minimum of 90 per cent shares of TCCL on ‘as is where is’ basis. The Privatization Commission had invited EoI from the prospective investors and business houses in May 2003.
The seven parties include: Afzal Motors, Peshawar; Kohat Cement Company Limited, Lahore; Shirazi Investments (Pvt) Limited, Karachi; Employees Management Group of Thatta Cement Company Limited, Thatta (Sindh); Tariq Sayeed and Associates, Lahore; United Bank Limited, Karachi; and Universal Navigation and Trading Limited, Karachi.
Thatta Cement Company Limited was incorporated in 1980 as a limited company under Companies Ordinance 1913 (now Companies Ordinance 1984) and is a wholly-owned subsidiary of State Cement Corporation of Pakistan Limited (SCCP). The unit is located 115 km in the Northeast of Karachi at Makli Ghulamullah road, district Thatta.
The plant is based on dry technology and has a production capacity of 1,000 tons per day. The entire plant and machinery was imported from Mitsubishi Corporation, Japan, while the slag grinding mill has been supplied by HMC. The plant started commercial production in December 1982 and is fully operative.
Its main products include Ordinary Portland Cement, Slag Cement and Sulphate Resisting Cement, while lime stone, clay/shale, iron ore, gypsum and slag are the inputs/raw materials. The unit is located on 236 acres of land consisting of factory, office and workers colonies complete with all facilities along with 4,725 acres of mining lease land (Quarry).
The first bidding for TCCL was held on September 7, 2002, and the Privatization Commission received an offer of Rs696.431 million highest bid at the rate of Rs10 per share for the sale of 71.79 million shares i.e. 90 per cent shares of TCCL on ‘as is where is’ basis, including Rs383 million loan liabilities and 50 per cent of GHS/VHS to be paid to the employees by the buyer, which was around Rs45 million making the total above Rs1 billion.
The Cabinet Committee on Privatization (CCoP) in its meeting on September 23, 2002, had approved the bids, but the successful bidder defaulted and failed to deposit the bid amount as per sale schedule. As per laid down procedure the Privatization Commission forfeited the earnest money worth Rs50 million.