The Privatisation commission of Pakistan has privatized state owned Mustehkam Cement Limited (MCL) and Bestway Group of UK will take over the ownership, management and control of MCL.
The PC had earlier called for bids to privatize MCL on September 15, 2005 and three big companies took part in the bidding process. Bestway Cement Limited offered the biggest bidding amount of Rs 3.2bn and subsequently was offered to take over the MCL.
Bestway later on deposited the 25 percent of the total bidding amount i.e Rs 800m on October 8, 2005. In a meeting held on November 8, 2005 between Privatisation commission and Bestway Group it was agreed by both sides that Bestway will deposit of remaining bidding amount.
The directors of the Bestway Group will meet the officials of the Privatisation Commission and would pay the remaining 2.3bn rupees and then the formal agreement will be signed citing the transfer of MCL to Bestway. After the signature ceremony, Bestway Cement Limited will then formally take over the MCL.
The privatisation of MCl has taken place at a crucial time as there is an urgent need of cement in the country given the very high domestic consumption of cement and unanticipated requirements of cement for reconstruction activities in the earthquake devastated areas. Transfer of MCl to Bestway bodes well not only for MCL but also for the country as Bestway has proven record of successful and efficiently managing business.