Federal Minister for Finance and Revenue, Shaukat Tarin, presided over meeting of the Cabinet Committee on Privatization (CCoP) here on Thursday.
Federal Minister for Privatization Muhammedmian Soomro, Chairman Privatization Commission Muhammad Saleem, Federal Secretaries and senior officials attended the meeting, said a press release issued by Ministry of Finance here.
On a proposal by the PC for the sale/divestment of all government shares (96.6%) of Heavy Electrical Complex to the successful bidder M/S IMS Engineering Pvt. Ltd., against their highest bid of Rs. 99.999/share amounting to Rs. 1,410,000,000, the CCoP approved the proposal. The proposal will be considered by the Cabinet.
It is pertinent to mention that the successful bidding held for Privatisation of Heavy Electrical Complex (HEC) Privatisation Commission (PC) successfully conducted the bidding for privatisation of Heavy Electrical Complex (HEC), the first entity-level strategic transaction since 2015.
As per the transaction structure approved by Federal Cabinet in December 2020, all 96.6 percent Government shares in HEC were offered for sale.
This was the fifth attempt at privatizing HEC with prior unsuccessful efforts in 2006, 2011, 2013 and 2015.
With the highest bid price of Rs. 99.999 per share from IMS Engineering, HEC’s enterprise value is estimated to be around Rs. 1,900 million.
Valued as a going concern, reserve price was based on extensive diligence and financial modeling that incorporated demand outlook and supply constraints, and was approved by CCOP earlier in the day.
PC Board will now meet tomorrow to discuss the outcome and recommend the transaction to CCOP for its approval before it is presented for Federal Cabinet’s consideration.
PEL and Waves-Singer were unsuccessful bidders.—APP
