Pre-bid meeting to sell Heavy Electrical Complex held
ISLAMABAD: A pre-bid meeting for the Heavy Electrical Complex (HEC) selloff was held at the Privatisation Commission under the chairmanship of Federal Minister for Privatisation Mohammedmian Soomro (via Zoom).
The meeting was held in the backdrop of the forthcoming bidding for the privatisation of HEC.
The officials from the Privatisation Commission and financial advisers’ consortium responded to the queries of the pre-qualified bidders.
The queries were mainly regarding instructions to the bidders’ document and the share purchase agreement regarding the Heavy Electrical Complex privatisation.
Moreover, the data/information for the buyers’ side due diligence has been uploaded for the last three months on Virtual Data Room (VDR) and information for the potential investors has been uploaded after proper verification.
The meeting briefed the bidders on the bidding process and share purchase agreement. During the meeting, questions were asked related to technical, financial, HR and legal aspects of the entity being privatised. The questions were addressed by the director general, transaction manager and financial advisers’ consortium and legal consultants.
On a few pending matters, the bidders were assured that these matters are being closely followed with the Ministry of Industries and Production being the administrative ministry of HEC.
It is expected that the issues will be resolved soon. Privatisation is a very complex process involving various steps, including the seller and buyer due diligence, evaluation and valuations. The entities being privatised are often loss-making and have various encumbrances attached, which have to be removed to enable the completion of the privatisation process.
The whole process took almost 1.5 years for the Privatisation Commission to bring this entity at the pre-bid meeting after addressing various encumbrances related to employees, land, distribution companies and Khyber-Pakhtunkhwa Economic Zones Development and Management Company.
The pre-bidding meeting will now be followed by the submission of reserved price for final bidding by the financial advisers’ consortium; which will be considered/recommended by the Privatisation Commission Board for final approval of the Cabinet Committee on Privatisation (CCoP) and the Federal Cabinet, respectively.
It is expected that the privatisation of the Heavy Electrical Complex will boost the investors’ confidence in the transparency of the privatisation programme. This will also create a conducive environment for the upcoming larger size privatisations, including Guddu Power Plant, re-gasified liquefied natural gas (RLNG) plants and will also boost the private sector participation; planned in the distribution companies.
In the end, the federal minister for privatisation reiterated that all the legal/plausible concerns of the bidders will be addressed in collaboration with the line ministries/divisions to ensure smooth and earliest bidding.
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