Scheme for Revival of Pakistan Steel Mill Approved
The Dawn reported that Pakistan’s Cabinet Committee on Privatisation has approved the issuance of Scheme of Arrangement by the Privatisation Commission for the revival of Pakistan Steel Mill. The CCoP directed PC to expedite the process of soliciting Expression of Interest and make efforts to close the transaction at the earliest. The approval has now paved the way for PC to file the SOA with the Securities and Exchange Commission of Pakistan. This will include updated financial reports of the PSM and its subsidiary, approved by the Privatisation Commission Board for transferring the utility connections to the newly formed subsidiary without encumbrances, approval for the retention of the new subsidiary either by the government of Pakistan or PSM and the desired size of divestment among others.
The CCoP has already approved the transferring of ‘Identified Core Operating Assets’ into wholly-owned subsidiary of PSM through the scheme of arrangement as provided in the Companies Act of 2017, followed by the sale of majority shares of the newly-formed subsidiary (without transferring of full ownership) to strategic private sector partner.