Wednesday, March 29, 2023

PC Board told investors’ pre-qualification criteria for PSMC

The Privatisation Commission (PC) Board met to examine the prequalification requirements of investors for the resurrection of Pakistan Steel Mills Corporation (PSMC), as well as the auction results of Services International Hotel (SIH).

Mohammed mian Soomro, Federal Minister for Privatization, presided over the gathering.

The resurrection of Pakistan Steel Mills is one of the key goals of the privatization plan, as the mills have been idle since 2015. As a result, the government intends to bring in both international and domestic investors to help revive Pakistan’s largest industrial company.

To settle the difficulties, there have been several talks with parties and ministries. According to the transaction characteristics authorized by the Cabinet Committee on Privatisation (CCoP), the designated core operational assets would be transferred to PSMC’s new subsidiary called Steel Corporation (Pvt) Ltd, and subsequently, the subsidiary’s equity shares would be divested through a bidding procedure.

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In light of the Cabinet Committee on Privatisation’s decision, expressions of interest (EoI) for investors will be solicited in order to pre-qualify them.

The PC Board was presented with a draught document comprising eligibility requirements as well as the grounds for rejection for potential investors for debate and approval.

The board approved the request for a statement of qualifications (RSoQ) and the expression of interest (EoI) documents. Following the filing of the scheme of arrangement (SoA) by the Pakistan Steel Mills (PSM) with the Securities and Exchange Commission of Pakistan, the Ministry of Privatisation would publish advertising soliciting expressions of interest.

Along with the submitted proposal, which is greater than the restricted price, the PC Board also recommended the highest bidder for Service International Hotel, Faisal Town Pvt Ltd.

After requesting permission from the CCoP/Cabinet, the successful bidder will be granted a letter of acceptance. Furthermore, in accordance with the PC Board’s permission, 12 prequalified parties for the Jinnah Convention Center have been informed to participate in the next phases of the bidding process.

According to the federal minister, “we have gone a long way, with a concentrated goal of reviving Pakistan’s largest industrial unit, which could function at full capacity and contribute to the national economy.”

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