PC invites EOI for sale 90% shares of HPFL
By Khalid Amin

ISLAMABAD—The Privatisation Commission (PC) has invited Expression of Interest (EOI) from prospective investors that is companies or consortia engaged in manufacturing or engineering business who can demonstrate the ability to own and efficiently manage and operate the Company, for the acquisition of minimum of 90 percent shares of Hazara Phosphate Fertilizers (Private) Limited (HPFL) together with management control on ‘as is, where is’ basis.
The plant is located at Haripur (NWFP) 75 km from Islamabad, said a press statement issued here on Monday. The factory is situated on 57 acres of developed land and includes plant, housing and ancillary facilities. National Fertilizer Corporation of Pakistan (Private) Limited (NFC) owns Hazara Phosphate Fertilizers (Private) Limited. HPFL is a state owned private limited company, registered under the Companies Ordinance 1984.
The authorized share capital of the company is Rs.200 million divided into 20 million ordinary shares of Rs.10 each whereas the issued, subscribed and paid up capital of the company is Rs.191.143 million comprising 19.143 million ordinary shares of Rs.10 each. The PC has asked the interested parties to submit EoI (in duplicate) latest by December 08, 2007 along with a non-refundable processing fee of Rs.100, 000/= (Rupees one hundred thousand only). All parties submitting EoI shall be sent Request for Statement of Qualification (RSOQ) document for response, which shall form the basis for pre-qualification. Closing date for submission of Statement of Qualification (SOQ) is December 22, 2007.
The participating parties have been further asked that while submitting EoI they should clearly mention the name of company, nature of business and other background information alongwith copies of constitutive documents, proof of net worth of Rs.150 million as per audited financial statements, duly certified by a firm of Chartered Accountants, for the latest year but not earlier than December 2006, list of director(s) along with copies of Computerized National Identity Card (CNIC) and National Tax Number (NTN), Name, Address, Telephone, Mobile, Fax, Email of the Focal Person to be contacted and pending, threatened litigation(s) against the company and the director(s). In the event of a consortium, the consortium will be required to provide a consortium agreement identifying the lead bidder (a company) and setting forth obligation inter-se of consortium members.
Other important conditions applicable to the Successful Bidder include that the purchaser shall provide an undertaking to continue to operate Company’s manufacturing facility and shall not in any way abandon, cease to operate or otherwise shutdown the Company’s existing manufacturing facility / processes. Ten (10) percent shares would be offered to those regular employees of HPFL who do not opt for GHS/VSS at 10 percent discount to the bid of the successful bidder’s per share value. Remaining Shares not purchased by the regular employees shall be purchased by the Successful Bidder on its bid price.
The cost of Golden Hand Shake Scheme (GHS) for permanent workers based on All Pakistan State Enterprises Workers Action Committee (APSEWAC) agreement and Voluntary Separation Scheme (VSS) for the permanent executives will be shared equally between the new buyer and the Privatisation Commission. National Fertilizer Marketing Limited (NFML) is currently carrying out marketing of the product of HPFL. The Purchaser shall, however, be free to market the product using its own arrangement. The Government of Pakistan in order to encourage use of Phosphatic Fertilizers is currently providing a subsidy of Rs. 204 per bag effective from 1st July 2007. To improve the profitability of HPFL, Government of Pakistan and Government of NWFP are endeavoring to make available local phosphate rock as raw material through enabling environments for the private sector mining companies.