The Sindh High Court has handed over the undisputed physical possession of the premises of Progas Pakistan Limited with all underlying assets to SSGC LPG Limited as the competing bidders did not appear with an appeal before a superior bench.

Sources said SSGC LPG, wholly owned subsidiary of Sui Southern Gas Company had acquired LPG import terminal and bottling plant operating under the name of Progas Pakistan through an open auction conducted by the Sindh High Court for PKR 2.25 billion.

Initially, SSGC was the sole bidder with an offer of PKR 1.84 billion. Later, the directors of Progas and National Logistic Cell challenged the SSGC’s bid with an offer of PKR 2.25 billion. However, SSGC matched the counter offer which was awarded by the high court with an option for challenging parties to go into appeal either before the high court’s double bench or in the Supreme Court.

Industry sources, quoting the legal provisions, said that NLC being a shareholder in Progas had the primary right to acquire the company provided being the highest bidder and that was why the court ruled the decision with an option open for appeal before a superior bench.

They said that NLC and the directors had high intentions to go into appeal and retain the facility however, the appeal was not filed so far. The acquisition of Progas would benefit the profitability of the gas utility and would have a positive impact on the company’s share price.

As this would be SSGC’s subsidiary, therefore, the impact would directly be on the company’s bottom line. SSGC’s acquisition of LPG import terminal would also help relieve gas demand pressure as the southern gas utility plans to provide LPG as an alternative fuel, particularly in the rural areas.

(Sourced from www.thenews.com.pk)