ISLAMABAD: A meeting of the Cabinet Committee on Privatisation has approved a proposal for sale of all government shares in Heavy Electrical Complex to the successful bidder.
A meeting of the committee was chaired by Finance Minister Shaukat Tarin. The proposal will be considered by the cabinet. The committee on approved the sale of all government shares (96.6 percent) of Heavy Electrical Complex (HEC). The meeting approved the sale of all government shares to the successful bidder IMS Engineering Pvt Ltd against their highest bid of Rs99.999 per share.
Federal Minister for Privatization Muhammedmian Soomro, Privatization Commission Chairman Muhammad Saleem, Federal Secretaries and senior officials attended the meeting.
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On Tuesday. the Board of Privatisation Commission endorsed the highest bid price for Heavy Electrical Complex (HEC), which was the first entity-level strategic transaction since 2015. The meeting deliberated over one-point agenda and the board members welcomed the price offered by the successful bidder for the state-run entity.
The bidding price of Rs99.99 per share or Rs1.9 billion to acquire 14.10 million shares (96.6pc stake) offered by IMS Engineering was also higher than the reserve or the reference price of Rs98.23 per share fixed by the Cabinet Committee on Privatisation (CCoP).
The commission said that the reserve price was based on extensive diligence and financial modelling that incorporated demand outlook and supply constraints. The transaction structure of HEC was approved by CCoP in November 2020 and ratified by the cabinet in December the same year.
HEC, located in Hattar Industrial Estate in district Haripur, manufactures power transformers of 132kV and 66kV with units ranging from 6.3 to 40MVA (high-voltage) along with services for testing, repairs and onsite commissioning of transformers.
