Privatisation Commission hosted the signing ceremony for sale of Heavy Electric Complex (HEC) to IMS Engineering (IMS).
This is the first entity-level privatisation in the country in seven years and this was the fifth attempt to sell HEC since 2006.
Per transaction structure approved by the Government, all 96.6% shares of the company were offered for sale in a competitive open-bidding process.
HEC is owned by State Engineering Corporation (SEC) which is under the administrative control of Ministry of Industries and Production (MOIP). The winning bid of IMS at Rs. 99.999 per share will result in Rs. 1.4 billion of proceeds for the government. Additionally, IMS will assume all liabilities of the company. PEL and Waves-Singer were unsuccessful bidders.
The signing ceremony at the office of PC was attended by officials of PC, MOIP, SEC, IMS, Bank of Khyber and advisors BridgeFactor and AxisLaw.
Speaking at the occasion, Mr. Mahmoodul Haq, CEO of IMS stated, “We are extremely delighted to sign the agreement to acquire HEC and are excited about the prospects of IMS Heavy in the future.