Finance Minister, Shaukat Tarin has voiced his concerns regarding the unfair valuation assets of Pakistan Steel Mill (PSM). He said this while chairing a meeting regarding the privatisation of PSM where valuation of the core assets of PSM was discussed.
After discussions in the meeting, the following decisions were made: (i) Privatisation Commission shall undertake two more valuations of the core assets with the approval of CCoP, if required. One valuations may be assigned to Nespak while the other valuation may be undertaken by one of the top 5 evaluators on the approved list of Pakistan Banks’ Association; (ii) to expeditiously process the issuance of NOC by NBP, AFS (CF) will hold a meeting with the representatives of NBP, PSM, M/o Industries and Production and Privatisation Commission; and (iii) regarding issuance of NOC by SSGC, it was decided that the payment schedule of Rs.22 billion principal outstanding, subject to reconciliation, may be kept at 7 years supported by a Letter of Comfort (LoC) by Finance Division.
The following transaction structure has already been approved for PSM by the cabinet division “transferring of identified core operating assets into wholly owned subsidiary of PSMC through scheme of arrangement (as provided in the Companies Act 2017) followed by sale of majority shares of the newly formed subsidiary (without transferring of full ownership) to strategic private sector partner.”