PC invites EOI, SOQ for PSO by Jan 15
By Ali Imran

ISLAMABAD—Given the keen interest indicated by investors in view of the continued strength and performance of both the Pakistan economy and PSO, the Privatisation Commission has now extended another opportunity to investors to participate in the privatisation process of Pakistan State Oil Company Limited (“PSO”) and has asked the interested investors to send completed SOQ along with EOIs accompanied with a non-refundable processing fee of US $5,000 or Rs. 300,000 latest by 15th January 2007. Interested parties will not be prequalified if the processing fee is not paid at the time of submission of the SOQ.
Expressions of Interest (“EOI”) were earlier 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 Statements of Qualifications (“SOQ”) in response to the Request for Statement of Qualifications (“RSOQ”) were allowed to conduct due diligence and provided the draft transaction documents.
The Government of Pakistan (“GOP”) plans to sell 51% shareholding in PSO, together with management control to a qualified investor. A consortium led by JP Morgan is advising the Privatisation Commission on the sale.
PSO is the largest oil marketing company in Pakistan and is engaged in the storage, distribution and marketing of petroleum products. Currently PSO has approximately 3,700 retail outlets spread across the country. With an addition of 209 leased retail outlets, the New Vision network expanded to 1,459 across the country. For the year ending June 2006, sales revenue was in excess of Rs 352 billion (US $5.8 billion) and after tax profits amounted to Rs. 7.5 billion (US $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). Preliminary information on PSO is available on the following website: www.psopk.com RSOQ packages for submission of SOQ can be downloaded from the website of the Privatisation Commission at www.privatisation.gov.pk or obtained from the Privatisation Commission. Deadline for submission of SOQ is 15th January 2007. 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 no later than March 2007.
Parties who had already submitted an EOI along with the requisite processing fee in response to the earlier advertisement are not required to submit a fresh EOI. They should update or furnish any outstanding information / completed SOQ latest by 15th January 2007.
Last date for submission of complete SOQ by all interested parties is January 15th, 2007. No information will be accepted from any party after this date. Parties submitting SOQs will be provided further information including the draft transaction documents and access for due diligence. It is in the interest of parties to submit their SOQs at the earliest as early submission of SOQs will allow parties maximum time to complete their due diligence. No dispensation will be made for late submission of SOQ with respect to the process or the time line of the transaction. No information will be accepted from any party after January 15th 2007. Parties submitting SOQs will be provided further information including the draft transaction documents and access for due diligence. It is in the interest of parties to submit their SOQs at the earliest as early submission of SOQs will allow parties maximum time to complete their due diligence. No dispensation will be made for late submission of SOQ w.r.t. the process or the time line of the transaction.