ISLAMABAD: A consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited has been pre-qualified to conduct due diligence on Gujranwala Electric Power Company Limited (GEPCO) as part of the government’s privatisation process.
Lucky Cement informed the Pakistan Stock Exchange (PSX) in a filing on Wednesday that the consortium had submitted an Expression of Interest (EoI) and Statement of Qualification for the proposed acquisition of a 51% to 100% equity stake in GEPCO, along with management control.
The consortium, along with other interested parties, has been shortlisted to undertake financial, technical and legal due diligence of the power distribution company.
Lucky Cement clarified that neither it nor the consortium has entered into any binding commitment to acquire an equity stake in GEPCO.
The company said any such commitment would only be considered after the satisfactory completion of due diligence, receipt of all required corporate and regulatory approvals and a determination that the transaction is commercially viable.
“At this stage, the company, through the consortium, intends only to undertake a comprehensive due diligence exercise and evaluate the viability of the potential acquisition opportunity,” Lucky Cement said.
Nine Parties Pre-Qualified
The Privatisation Commission (PC) Board recently approved the prequalification of nine interested parties for the privatisation of GEPCO, paving the way for the next phase of the transaction.
The board was informed that 11 Expressions of Interest had been received for the acquisition of between 51% and 100% of GEPCO’s shareholding, together with management control.
The pre-qualified parties include three Turkish energy companies — Aktor Elektrik Enerji Yatirimlari San. Ve Tic. A.S., Genvera Enerji A.S. and Cengiz Enerji Sanayii Ve Ticaret A.S.
Other pre-qualified bidders include Engro Energy Limited, Sapphire Fibers Limited, Hub Power Holdings Consortium, Shirazi Investments (Pvt.) Limited Consortium, Artistic Milliners (Pvt.) Limited Consortium and AKD Securities Consortium.
Virtual Data Room Access Next
The pre-qualified parties will now proceed to the next stage of the privatisation process, including access to the Virtual Data Room (VDR) to undertake detailed buy-side due diligence.
The government is offering a 51% to 100% stake in GEPCO along with management control, with potential bidders expected to assess the company’s financial, technical, legal and commercial position before deciding whether to submit binding offers.
