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Sale of ACL Wah Cement: AWT inks Rs 874.062 accord with Privatisation Commission.

ISLAMABAD, May 13 -- Privatisation Commission (PC) Secretary Shahab Khawaja and the Army Welfare Trust (AWT) Chief Operating Officer Major General (r) Abdul Jabbar Bhatti signed an agreement for the settlement of long due proceeds amounting to Rs 874.062 million of ACL Wah Cement on Tuesday.

Minister for Privatisation Senator Waqar Ahmed Khan and AWT MD Lt General (r) Imtiaz Hussain witnessed the ceremony.

With a view to facilitate the recovery of outstanding receivable the Competition Commission of Pakistan (CCP) had directed to recover the principal amount with simple interest and waived charging of mark-up. All the defaulting buyers were approached but their response was dismal. As the receivable of PC stood at Rs 7.571 billion, Senator Khan took note of the situation and directed to engage all the defaulting buyers afresh in the best business manner and to recover the dues forthwith in national interest. The minister was of the view that once these cases were settled, PC would not only save lot of expenditure and efforts on litigation but these investors would be able to take part in our future transactions also.

Accordingly, ACL Wah management/AWT was approached for early settlement and to end 15 years old ongoing litigation. After numerous meetings and deliberations, an amicable agreement has been reached between PC and AWT. Despite crushing recession in cement sector, ACL would pay Rs 234 million upfront and Rs 640.062 million through three post-dated cheques payable in 18 months.

Similarly, another transaction, Hazara Phosphates (Pvt) Limited (HPFL) was acquired by Pak American Fertilizers Limited (PAFL) for a total value of Rs 1.23 billion. Upon receipt of sale price, share purchase agreement (SPA) was signed on November 28, 2008 and the buyer took over the management control of HPFL. While the transactions achieved financial close, certain issues with regard to the claim of Sarhad Development Authority (SDA) and NFC remained unsettled.

Published by HT Syndication with permission from Daily Times. For more information on news feed please contact Sarabjit Jagirdar at htsyndication@hindustantimes.com

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Publication:Daily Times (Lahore, Pakistan)
Date:May 13, 2010
Words:352
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