The privatisation of Faisalabad Electric Supply Company FESCO has moved into a crucial new phase after the Privatisation Commission Board prequalified 10 interested parties out of 12 applicants, opening the way for detailed due diligence and evaluation by prospective investors.
The decision was taken at the 258th meeting of the Privatisation Commission Board held in Islamabad on Friday, chaired by Prime Minister’s Adviser on Privatisation and Privatisation Commission Chairman Muhammad Ali.
The board was informed that 12 interested parties had submitted Expressions of Interest to participate in the FESCO privatisation process. Following a detailed evaluation of the submissions against the approved prequalification criteria, the Financial Adviser recommended 10 parties for prequalification.
The Privatisation Commission Board approved the recommendation, allowing the successful applicants to proceed to the next stage of the transaction.
The prequalified parties include Aktor Elektrik Enerji Yatirimlari San. Ve Tic. A.S., Genvera Enerji A.S., Cengiz Enerji Sanayii Ve Ticaret A.S., Engro Energy Limited and Sapphire Fibres Limited.
The Hub Power Holdings Consortium, comprising Lucky Cement, Kohat Cement and Metro Ventures, has also been prequalified to participate in the transaction.
Other successful applicants include Shirazi Investments Pvt Limited, Maple Leaf Cement Factory Limited Consortium with Kohinoor Textile Mills, Pakgen Limited Consortium comprising Nishat Mills, Nishat Power, Nishat Chunian, Lalpir, Pak Elektron and Kohinoor Energy, and Artistic Milliners Pvt Limited.
With the prequalification stage completed, the successful parties will now enter the next phase of the FESCO privatisation process.
According to the Privatisation Commission, the next stage will include access to the Virtual Data Room VDR, allowing the prequalified parties to conduct detailed buy-side due diligence of FESCO.
The access to the Virtual Data Room will enable prospective investors to examine detailed information about the company before determining their participation in subsequent stages of the privatisation transaction.
The development represents a significant advancement in the privatisation programme for Pakistan’s power distribution companies, as FESCO has now moved beyond the initial Expression of Interest stage and into detailed evaluation and due diligence by prospective investors.
The successful prequalification of 10 out of the 12 interested parties also indicates strong investor interest in the proposed transaction, with the process now entering a more competitive and information-intensive phase.
The PC Board also approved the reconstitution of its Audit and Risk Committee, Human Resources Committee, Investment Committee and Legal Committee during the meeting.
The board reaffirmed its commitment to advancing the privatisation programme through transparent, competitive and professionally managed transactions.
It also maintained that accountability and value maximisation for the government and the people of Pakistan would remain key considerations throughout the process.
The prequalification of the 10 interested parties marks an important milestone in the FESCO transaction. The successful parties will now have access to detailed company information through the Virtual Data Room, allowing them to assess FESCO’s operations and financial position and determine their strategy for the subsequent stages of the privatisation process.
The transaction will now proceed towards detailed due diligence and evaluation, bringing FESCO closer to the next decisive stage of its privatisation.
