Minister holds meeting with PSM potential bidders

ISLAMABAD, May 19 (APP): Federal Minister for Privatisation Mir Abid Hussain Bhayo on Thursday held a meeting with pre-qualified bidders of Pakistan Steel Mills(PSM).

The said meeting was held to revitalize the steel corporation and to find possible ways where Pakistan’s largest steel mills can be made more productive in years to come.

Chairman Privatisation Commission Saleem Ahmad, Federal Secretary, senior officials and Financial Advisors were present in the meeting which discussed possible ways .

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.

Speaking on the occasion the minister said that the government  was keen to share with 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 these pre-qualified bidder access to a huge market of steel with a potential for exports across the globe.

In the meeting federal minister, chairman, secretary and financial advisers responded to the queries/enquiries from the pre-qualified bidders.

The pre-qualified bidders inquired about the potential time line for the approval of scheme of arrangement (included in the transaction structure of PSMC), valuation procedure, likely dilution of GoP 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) since March, 2022.

A request was also made for the technical professionals of each pre-Qualified Bidder to visit PSMC for inspection/assessment of the steel plant, jetty etc. Presently, buy side due diligence is on-going, however, confirmation of site visit is still awaited.

Federal Minister Abid Hussain Bhayo further said that the government’s investment policy provides both domestic and foreign investors the same incentives, concessions, and facilities for industrial development.

The minister held that “Pakistan is an ideal place for foreign investment and we (government) are much keen to provide investors friendly regime as we believe in ease of doing business.”

He added that we shall facilitate the investors up to the maximum and will welcome the site visit of PSM from the pre-qualified bidders.

Speaking on the occasion, Chairman Privatisation Saleem Ahmed commented that 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 creation of productive capacity necessary to sustain domestic infrastructure development with access to steel slated for export from Pakistan’s strategic geo location.
He further noted the importance of Pakistan’s fraternal ties with China in enabling a long-term partnership to benefit the people of both the countries.