PSM’s transaction structure approved

ISLAMABAD: The Privatis­ation Commission Board on Wednesday approved transaction structure for the revival of Pakistan Steel Mills (PSM).

The PSM has not been in operation since June 2015.

The transaction structure was agreed at the board’s meeting concluded late night on Wednesday, and will now be presented to the Cabinet Committee on Privatisation for approval.

The board agreed to the transaction structure and asked financial advisers to move ahead with procedural follow up processes.

Minister for Privatisation Muhammadmian Soomro said the PSM would be leased out initially for ten years, with the option to extend the lease period up to thirty years. When asked about the completion of the transaction, he said that it may take five to six months to complete.

He said the PSM losses and liabilities currently stand at around Rs350 million.

The board meeting discussed various matters relating to the PSM, status regarding the hiring of Financial Advisory Consortium (FAC) for Roosevelt Hotel, offloading of the Oil and Gas Development Company Ltd (OGDCL) and Pakistan Petroleum Ltd (PPL) shares, Guddu Power Plant and Sindh Engineering Ltd.

The terms of reference for hiring of financial advisors for the Roosevelt Hotel in New York, owned by the Pakistan International Airlines (PIA) were also deliberated upon by the board members.

The board also discussed divestment of up to 10 per cent of government shares in PPL and up to 7pc in OGDCL.