Wednesday, August 13th, 2025
Home »Top Stories » PFL sell-off: transaction, bidding process discussed

  • News Desk
  • Feb 4th, 2005
  • Comments Off on PFL sell-off: transaction, bidding process discussed
The pre-bid conference for the privatisation of 94.8 percent shares of Pak-Arab Fertilisers (Pvt) Limited (PFL) was held here on Thursday. Secretary Privatisation M Tahsin Khan Iqbal chaired the meeting. The prospective bidders, who completed due diligence for the transaction, discussed various issues relating to the transaction and the bidding process. The officials of the Privatisation Commission, Ministry of Industries & Production, International Petroleum Investment Company (IPIC), UAE and National Fertilisers Commission responded to the various queries made by the prospective bidders.

On the occasion, M Tahsin Khan Iqbal said that the government would continue to adhere to the policy of providing comfort to the investors by providing level playing field and to extend as much benefits of privatisation to the consumers.

He said that the bid documents would be finalised in the light of the comments, suggestions and the information gathered from today's pre-bid moot.

The Privatisation Commission has received 12 EoIs for Pak-Arab Fertilisers (Private) Limited, which is 52 percent GoP-owned (through National Fertiliser Corporation) company. International Petroleum Investment Company of UAE (IPIC) owns the balance 48 percent shares.

The pre-bid conference was attended by 7 parties, including Nishat Chunian Limited/Umer Fabrics, Fatima Group of Companies, Dawood Hercules Chemical Limited, Fauji Fertilisers, Husnain Cotex, Al-Ghurair Group, Dubai and Employees Management Group.

The company was incorporated in 1973 with a paid-up capital of Rs 743,061 million. It is the largest fertiliser complex in Pakistan and the only factory producing Calcium Ammonium Nitrate (CAN) and Nitro-phosphate (NP) commonly known as compound fertiliser. Raw materials for manufacture of the fertilisers are natural gas supplied by Sui Northern Gas Pipelines Limited through its transmission network and rock phosphate imported from Jordan/Morocco.

The project is located at Khanewal Road, Multan. The site area comprises approximately 3302 acres, which includes area for the factory and the housing colony, which is owned by the company. The annual capacities of the products are Ammonia 316,800 metric tonnes, Nitric acid 455,400 metric tonnes, Nitrophosphate 304,500 tonnes, Calcium Ammonium Nitrate 450,000 tonnes and Urea 92,400 tonnes.

Currently the company's products are being marketed through the National Fertiliser Marketing Limited (NFML), a government-owned company responsible for marketing the fertiliser production of all the government-owned fertiliser/manufacturing units. The fertiliser sector offers strong opportunities for further development by private sector entrepreneurs. The plant is operating at excellent efficiency levels, which are, on the average, above the installed capacity. All the plants are in sound condition and have been supplied by renowned suppliers.

Copyright Business Recorder, 2005


the author

Top
Close
Close