The Pakistan Steel Mills Corporation (PSMC) on has invited expressions of interest (EoIs) through Privatisation Commission, from prospective investors. The EoIs are to acquire at least 51 per cent or up to 74pc issued share capital of Steel Corporation together with its management control.
For the revival of Pakistan steel mills, the PSMC has incorporated a wholly-owned subsidiary private company limited by shares called ‘Steel Corp’. The PSMC and Steel Corp have filed ‘Scheme of Arrangement’ with the Securities and Exchange Commission of Pakistan for the transfer of Core Operating Assets to Steel Corp. The last date for the submission of EoIs is 30th September.
The PSMC has revalued the Core Operating Assets, at fair market value which was recorded in the PSMC financial statements for the period ending December 2020. The PSMC has identified tentative land measuring 1,229 acres situated at Pipri and Bakran, Bin Qasim owned by the PSMC where Core Operating Assets, including the steel plant, are situated, and is expected to cater production capacity enhancement up to 3 million tonnes per annum. Currently the Plant has a designed production capacity of 1.1m tonnes per annum. It has been decided that the PSMC core land will be leased to the Steel Corp through a land lease deed on arms-length basis.