CCoP accepts issuance of Scheme of Arrangement for PSM revival
ISLAMABAD: The issuance of the Scheme of Arrangement was accepted on Tuesday (SOA) by the Cabinet Committee on Privatisation (CCoP) for the revival of Pakistan Steel Mills (PSM).
The CCoP steered PC to facilitate the process of approaching Expression of Interest and attempt to finish the transaction quickly as possible.
This approval enables PC to record the SOA with the Securities and Exchange Commission of Pakistan (SECP). Among others, this document will comprise of renewed financial reports of the PSM and its subsidiary, accepted by the Privatisation Commission Board, permission for withholding the new subsidiary via the government of Pakistan or PSM, and aspired volume of divestment.
Previously, the companies Act of 2017 consisted of the Cabinet Committee on Privatisation, which allowed the shifting of ‘Identified Core Operating Assets’ towards an entirely owned subsidiary of PSM
the scheme of arrangement, and supported the sale of majority shares of the new subsidiary.
Hassan Nasir Jamy, the PC Secretary notified the committee on the progress of the decisions made at the meeting in June of the CCOP. The committee reviewed the substantive reasons for continuing further concerning the transaction structure during the revival of PSMC.
The meeting was chaired by Shaukat Tarin, the Finance Minister who applauded the efforts of all related ministries and departments in the revival of the Pakistan Steel Mills. Many senior officials such as Minister for Industries and Production Khusro Bakhtyar, Minister for Privatisation, Mohammadmian Soomro, and various federal secretaries were present at the meeting.
The transaction structure of the revival of PSMC was accepted in December 2020, which granted the creation of a subsidiary that transferred the recognized assets and following sale of majority shares of the newly formed subsidiary, excluding the shifting of ownership.