Government of Pakistan
Privatization Commission

PC TO SOON INVITE EOI FOR PAKISTAN STEEL MILLS CORPORATION

Islamabad, August 17, 2005
 

The Privatisation Commission ("PC") will soon invite formal Expressions of Interest (EOI) from interested parties to privatise strategic equity stake in Pakistan Steel Mills Corporation ("PSMC" or the "Company"), together with management control on fast track basis. A consortium led by Citigroup Global Markets Limited is advising the PC on this transaction.

Pakistan Steel is the first integrated iron and steel works of Pakistan, which was set up with techno - economic collaboration of the former USSR. It has a production capacity of 1.1 million tones per annum with built-in potential for a total 3.0 million tones per annum capacity. Located 40km south east of the coastal city of Karachi, PSMC makes a range of long and flat steel products. In the fiscal year 2004-05 PSMC has recorded annual sales of over Rs. 30 billion and net profit of Rs 6 billion.

A Request for Statement of Qualification ("RSOQ") will be dispatched to the investors expressing formal interest in the privatisation process of PSMC. The RSOQ package will contain pre-qualification requirements and other relevant information. PC would pre qualify investors based on the criteria spelled out in the RSOQ. Following this, pre-qualified investors would be allowed to conduct due diligence and participate in a transparent and competitive bidding process.

 Source: http://www.privatisation.gov.pk/Handout/HO-AR-05/August-05/Handout%20August%202005.htm