Government of Pakistan
Privatisation Commission

PC RECEIVES REMAINING AMOUNT OF Rs. 12.011 BILLION FOR NATIONAL REFINERY LIMITED

Islamabad, July 02, 2005

An authorised representative of the Attock Oil Group of Companies handed over a pay order worth Rupees Twelve Billion Eleven Million Three Hundred Fifty One Thousand Seven Hundred Three only (Rs.12,011,351,703/- ) as the remaining amount of the total offer of Rs.16.415 billion for acquisition of Strategic Stake of  51 % (33,985,788) shares of National Refinery Limited (NRL) together with transfer of management control here today.

Earlier, 25 % of the total offer worth Rupees four billion one hundred three million seven hundred eighty three thousand nine hundred one only (Rs.4,103,783,901/=) was received by Privatisation Commission on June 21, 2005 as first instalment in this regard. A formal handing over ceremony is being scheduled at Karachi on July 7, 2005.

As per sale agreement the buyer was required to deposit the remaining 75 % amount within 60 days after issuance of letter of acceptance. The Attock Oil Group could have made the final payment of Rs.12.011 billion (adjusted for Rs.300 million earnest money already submitted by them) by August 06, 2005. However, the Group had indicated at the time of paying the first installment that it would make the remaining payment during July 2005.

The Bidding for NRL privatisation was held on May 31, 2005 and Privatisation Commission (PC) Board recommended the offer for approval of Cabinet Committee on Privatisation (CCOP), which approved on June 7, 2005 the sale of 51% (33,985,788 shares) equity stake in National Refinery Limited ("NRL" or the "Company"), together with transfer of management control to the Attock Oil Group. Privatisation Commission engaged Citigroup Global Markets  Limited of UK in April last year to provide financial advisory services for the privatisation of the National Refinery Limited.

Three pre-qualified bidders 1. Attock Oil Group, 2. Crescent Steel and Allied Products and Shakarganj Mills Limited and 3. Fauji Foundation Consortium had become eligible for bidding after depositing   Rs.300 million each as earnest money by the due date.

The Attock Oil Group submitted the highest bid with an offer of Rs.483/- per share and total bid value of Rs.16. 415 billion, Crescent Steel and Allied Products and Shakarganj Mills Limited were second ranked bidder with an offer of Rs.260/- per share with a total bid value of Rs.8. 836 billion while Fauji Foundation Consortium was the third ranked bidder witn an offer  of Rs.197/- per share and a total bid value of Rs.6. 695 billion.

PC received 29 EOI for NRL while 16 parties submitted their Requests for Statement of Qualification (RSOQs). Among them 11 parties were pre-qualified for conducting due diligence in the data room. Six parties participated in the pre-bid conference while three parties finally decided to participate in the bidding round.

National Refinery Limited was incorporated in Pakistan on August 19, 1963 as a public limited company.  The refinery complex comprises two lube refineries, a fuel refinery and a Benzene, Toulene and Xylene plant, located in the Korangi Industrial Area within Karachi, Pakistan's largest city. The Company's designed crude oil processing capacity is about 2.7 million tonnes per year (62,050bpsd) with a broad range of petroleum products to cater to Pakistan's growing demand for petroleum products. NRL is uniquely positioned in the economic landscape of Pakistan, where it enjoys the unrivalled business niche as the only local refinery to produce lube base oils ("LBO") and the single largest producer of high quality asphalts. Effectively, NRL has an 80% share of the LBO market and 80% share of asphalts. In addition to indigenous blenders, LBO produced is sold to several MNC marketing companies where it serves as a key component in the production of high-end branded lubricants. In addition, the company produces other value added petroleum products, specialty oils and slack waxes. NRL products adhere to stringent international quality specifications and the Company is certified in accordance with OHSAS-18001 and ISO-14001.

Source:
http://www.privatisation.gov.pk/Handout/HO-AR-05/July-05/HO-0272005%20PC%20Receives%20Remaining%20Amount%20of%20Rs.%2012.011%
20Billion%20for%20National%20Refinery%20Limited.htm