ISLAMABAD: The Privatization Commission headed by the Federal Minister for Privatization has approved the transaction structure for the privatization of steel mills.
According to details, regarding the privatization of steel mills, the Steel Mills Board headed by Federal Minister for Privatization Muhammad Mian Soomro reviewed two options. The board decided to sell shares by making it a subsidiary of the country’s largest industrial unit.
Steel Mills officials say investors must form a wholly-owned entity to sell the shares.
The Privatization Commission says 51 to 75 per cent of the shares of the new subsidiary will be offered to investors, but the decision will be made by the committee.
The Commission decided that for the sole purpose of steel manufacturing, Pakistan Steel Mills officials would sign a land lease agreement with the subsidiary.
According to the decision, the special rights to run the company and the right of way will be transferred to the new subsidiary.
It should be noted that the steel mills were closed in 2015, but despite the closure of steel, the employees have been paid Rs 33 billion by the federation.