Federal Minister for Privatization Mir Abid Hussain Bhayo on Thursday chaired a meeting with pre-qualified bidders of Pakistan Steel Mills (PSMC).
The minister in his welcome address said that the government is keen to share with our time-tested Chinese friends the advantages accruing from the strategic position of Pakistan. The pre-qualified parties are among the leading global manufacturers and Pakistan is offering them access to a huge steel market with potential for exports across the globe.
He added that the biggest advantage for the potential bidder would be the burden-free entity as the company has been insulated from all legacy issues including financial and HR liabilities.
The bidders inquired about the potential timeline for the approval of the scheme of arrangement (included in the transaction structure of PSMC), valuation procedure, likely dilution of government shares, utility connections, and use of jetty and land lease agreements.
After the pre-qualification of bidders, the buyer side due diligence was initiated by granting access to Virtual Data Room (VDR) in March 2022. A request was also made for the technical professionals of each pre-qualified bidder to visit PSMC for inspection of the steel plant and jetty. Presently, the buyer-side due diligence is ongoing, however, confirmation of the site visit is still awaited.
While speaking, Saleem Ahmed said that the revitalization of Pakistan Steel Mills is vital for Pakistan’s economic growth. Our proposed plan will not only envisage foreign direct investment and employment generation but also the creation of the productive capacity necessary to sustain domestic infrastructure development with access to steel slated for export from Pakistan’s strategic geo-location.
Chairman Privatization Saleem Ahmad, Federal Secretary, senior officials, and Financial Advisors were present. The pre-qualified bidders who attended the meeting were Bao Steel Group Xinjiang Bayi Iron & Steel Co. Ltd, Tangshan Donghua Iron, and Steel Enterprise Group Co. Ltd, and Maanshan Iron and Steel Co. Ltd.
Later, Federal Minister for Privatization and Minister for Industries & Production Syed Murtaza Mahmud jointly chaired a meeting regarding the progress on the revival of Pakistan Steel Mills.
The meeting was held to discuss corporate matters which are to be resolved in collaboration with the Ministry of Industries, Ministry of Maritime Affairs, and Pakistan Steel Mills Corporation. The Minister for Industries & Production said that the corporate matter for the completion of the transaction would be resolved on a priority basis with the active engagement of all stakeholders.
