Kohat Cement Company Limited has joined hands with other prominent corporate entities to explore the potential acquisition of Faisalabad Electric Supply Company Limited (FESCO), marking a significant development in the ongoing privatization process.
According to a material information disclosure submitted to the Pakistan Stock Exchange (PSX), Kohat Cement, together with Hub Power Holdings Limited, Lucky Cement Limited and Metro Ventures (Private) Limited, has formed a consortium to participate in the proposed privatization of FESCO.
The consortium has submitted an Expression of Interest (EOI) and Statement of Qualification for the proposed acquisition of between 51% and 100% equity stake in FESCO, along with management control. The stake is being offered for divestment by the Government of Pakistan through a competitive privatization process.
Consortium Pre-Qualified for Due Diligence
The consortium, along with other interested parties, has been pre-qualified and shortlisted by the Privatization Commission to undertake financial, technical and legal due diligence of FESCO.
The disclosure states that, in line with applicable privatization laws, the equity stake in FESCO will ultimately be offered through a competitive bidding process.
FESCO is one of Pakistan’s major electricity distribution companies, serving consumers across Faisalabad and surrounding areas. The potential privatization is therefore an important development for both the power sector and prospective investors.
No Binding Commitment Yet
Kohat Cement clarified that neither the company nor the consortium has entered into any binding commitment with any party regarding the acquisition of equity in FESCO.
Any commitment would only be considered after the successful completion of due diligence, receipt of all necessary corporate and regulatory approvals, and a determination that the proposed transaction is commercially viable.
At the current stage, the consortium’s objective is to conduct a comprehensive due diligence exercise and assess the overall viability of the potential acquisition opportunity.
What Comes Next?
The next major step will be the completion of the due diligence process, after which the consortium will evaluate whether to proceed further with the transaction. The final acquisition outcome will depend on the competitive bidding process and the satisfaction of the required regulatory and corporate conditions.
For Kohat Cement and its consortium partners, participation in the FESCO privatization process could potentially provide an opportunity to expand into the power distribution sector. However, the company has emphasized that no final acquisition decision has been made at this stage.
In summary, the development represents an initial step rather than a completed transaction. Kohat Cement and its partners have secured a place in the competitive process and will now assess FESCO’s financial, technical and legal position before determining whether to make a binding offer.
