PSO sell-off attracts keen interest

Posted on 01.18.07 by StockPK Team @ 3:55 pm    

The Privatisation Commission (PC) has received keen interest from several parties in response to the recent re-advertisement for the proposed sale of 51 per cent shares in Pakistan State Oil (PSO) with management control, the PC said on Wednesday.

Parties and groups submitting Statement of Qualifications (SOQs) and/or reaffirming their continuing interest in PSO include Abraaj Capital, UAE, Abu Dhabi Group, UAE, Al-Ghurair Investment, UAE, consortium of Aljomaih Group Saudi Arabia and Noor Financial Investment, Kuwait and National Industries Group, Bakri International Energy Systems and Dabbagh Group Holding, Saudi Arabia, Goldman Sachs (Asia) Finance, Vitol SA (Switzerland) and MCB Bank, Fauji Foundation, Attock Group of Companies and Kohinoor Group led by Kohinoor Textiles from Pakistan. In addition, some parties indicated their interest but did not submit SOQ, including the PSO employee group.

It may be recalled that last year Expressions of Interest (EOI) were invited from parties interested in acquiring the indicated shareholding and management control in PSO, resulting in the receipt of EoIs from various investors.

Those parties who subsequently submitted their SOQ in response to the Request for Statement of Qualifications (RSOQ) were allowed to conduct due diligence and provided the draft transaction documents.

Such parties who had already submitted EoIs along with the requisite processing fee in response to the earlier advertisement were not required to submit a fresh EoI. However, they were asked to update any outstanding information.

Parties joining the process at this stage would have to work under a tight schedule as the transaction formalities have been nearly completed with bidding targeted for March 2007.

PSO is the largest oil marketing company in Pakistan and is engaged in the storage, distribution and marketing of petroleum products. For the year ending June 2006, sales revenue was in excess of Rs352 billion ($5.8 billion) and after tax profits amounted to Rs7.5 billion ($123 million). PSO is listed on all three stock exchanges in Pakistan, and recipient of the Karachi Stock Exchange Top 25 Companies Award for 18 consecutive years. PSO is rated as “AAA” (Triple A) company by Pakistan Credit Rating Agency (PACRA).

Source: The News