The Pakistani government has invited expression of interests (EOIs) for 51pc stake in Pakistan Steel Mills (PSM). The government is keen to hand over management control of the steel mill to prospective investors.
PSM has floated a wholly-owned subsidiary Steel Corp for the privatization of its assets. Through a scheme of arrangement between PSM and Steel Corp, ownership of PSM’s steel plant, power generation plant and the supporting infrastructure will be transferred to the Pakistan government with the issue of shares.
Interested investors can acquire 51pc or upto 74pc issued share capital of Steel Corp and the deadline for submitting EOIs is Sep 30.
PSM is Pakistan’s largest integrated steel mill complex with a designed annual production capacity of 1.1mn mt and a built-in potential for expanding its capacity to 3mn mt. The mill is shut since 2015 due to losses. Sinosteel had expressed interest in PSM’s assets and started due diligence back in April 2020.