Privatization ministry meets foreign investors in PSM’s stake sale roadshow

ISLAMABAD: Privatisation ministry held meetings with international and local investors in a roadshow on Wednesday before a potential management and stake sale in loss-making Pakistan Steel Mills, a statement said.

"Roadshow with investors continues for the third consecutive day, the renowned national and international investors have shown interest in the revival of Pakistan's mega industrial corporation," it added.

Privatisation ministry started conducting roadshows from September 13 with international investment companies, which are from China, Russia and Korea.

The statement said these investment companies showed keen interest in investing in Pakistan Steel Mills due to its sheer potential and importance in the economy of the country.

The government is offering at least 51 percent or up to 74 percent shares capital of Steel Corporation -- a company owned and managed by Pakistan Steel Mills -- together with management control through a bidding process.

The Privatization Commission had appointed two Chinese firms including Pak-China Investment Company and Bank of China International Co. Ltd as joint advisor for the transaction.

Built by the Soviet Union in the 1970s, the state-owned facility has become a huge drain on government resources and has not produced steel at its 19,000-acre facility since June 2015.

Apart from a multi billion rupees worth of plants, the industrial complex also owns 1,229 acres of land.

The Pakistan Steel Mills last posted a profit of Rs9.5 billion in the financial year of 2007-08 . Since then, its financial health crumbled and started accumulating huge losses in Pakistan People's Party and Pakistan Muslim League Nawaz tenures.

"Today on the third consecutive day of the roadshow; a leading Chinese consortium was briefed about the future prospect of this venture and other relevant details regarding the sale of shares in the newly formed subsidiary of PSM through Scheme of Arrangement," the statement added.

Senior government officials responded to their queries along with the financial advisors, senior legal consultants and senior officers of the ministry.

Muhammad Mian Soomro, minister for Privitisation told the investors that the response mechanism from his ministry "will be swift, affective and investors’ friendly, and all the relevant information will be provided up to the satisfaction of the potential investors".

The roadshow will last till the 21st of the current month, and the participation of investment companies from other countries is also expected in coming days.

Minister Soomro also chaired a review meeting on privatisation and was briefed about the current status of various transactions and expected dates of completion.

The transactions of Jinnah Convention Center and Heavy Electrical Complex are at an advanced level. In the review meeting a detailed plan for the DISCOs was also discussed.