In an advancing move towards getting rid of defunct Pakistan Steel Mill, Government’s Cabinet Committee on Privatisation (CCoP) has decided the transaction structure for sale of Pakistan Steel mills.
The meeting of Cabinet Committee on Privatisation (CCoP) was held last week headed by federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh. The meeting was attended by Minister for Industries and Production Hammad Azhar, Minister for Maritime Affairs Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar, Minister for Privatization Mohammad Mian Soomro, Adviser to the PM on Commerce Abdul Razak Dawood, Minister for Energy Omar Ayub, SAPM on Power Tabish Gauhar and other senior officials of the Ministries of Finance, Industries & Production and Privatization Commission.
The committee has approved the structure of the transaction where “core operating assets” of Pakistan Steel Mill (PSM) will be identified and transferred into wholly owned subsidiaries of PSM through Scheme of Arrangement (as provided in the Companies Act 2017). This will follow sale of majority of Shares of newly formed subsidiary. However, government will retain substantial portion of the shareholding both in the Subsidiary and in the Holding company.
The transaction structure will now be forwarded to Federal Cabinet for their approval.
As per news flow, Chinese and Russian Investors are interested in acquiring stake in Pakistan Steel Mill. While as per some estimates, a minimum of $1 billion Investment is required for running the Steel Mill
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