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Six international firms bid for PSMC

ISLAMABAD — Six major international companies have shown their keen interest to take part in the privatisation of Pakistan Steel Mills Corporation (PSMC), which is expected to eventually fetch roughly $1 billion for the government.

Informed sources told that a Saudi and Kuwaiti company have expressed their willingness to take over the Mills and to expand its production capacity from 1.1 million tons to 3 million tons. The Mills is expected to be privatised within this month.

However, the government is increasing reluctant to sell PSMC to its Employees Management Group (EMG) because of its limited financial capacity, and wanted the potential local and foreign bidders to bid for the country's premier steel company.

The government, sources said, was not ready to accept EMG's demand that it be offered the Mills by transferring 26 per cent shares along with the management control.

The government has made it clear to the EMG that unless it was ready to acquire minimum 75 per cent shares, it would not be considered for meaningful privatisation.

The government, sources maintained, that the running units like the PSMC had been handed over to the buyers in the past by off-loading 90 per cent shares and that by giving it to the EMG on 26 per cent shares was not financially a feasible preposition.