Key Takeaways
- Lucky Cement, Hubco, Kohat Cement and Metro Ventures form a consortium to acquire GEPCO.
- The consortium has been prequalified by the Privatisation Commission.
- Due diligence and commercial viability will determine the acquisition.
Lucky Cement, Hubco, Kohat Cement Company, and Metro Ventures (Private) Limited have formed a consortium to pursue the acquisition of a 51 percent to 100 percent equity stake in Gujranwala Electric Power Company Limited (GEPCO).
Hubco, a wholly owned subsidiary of The Hub Power Company Limited, is part of the consortium, alongside Lucky Cement Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited.
The consortium has been prequalified by the Privatisation Commission and has been shortlisted to conduct financial, technical, and legal due diligence on GEPCO, which the government is offering for privatization through a competitive bidding process.
In a statement, the consortium stated that neither the group nor the individual companies had entered into a binding commitment to acquire GEPCO. Any commitment will depend on the satisfactory completion of due diligence, the required corporate and regulatory approvals, and a determination that the transaction is commercially viable.
The consortium intends to conduct a comprehensive due diligence exercise and assess the viability of the potential acquisition before deciding on the next steps.
The acquisition is part of the government's ongoing privatization efforts, aimed at improving the efficiency and management of state-owned enterprises.
The consortium's involvement highlights the growing interest in the privatization of power sector assets in Pakistan, with several private companies and conglomerates expressing interest in similar opportunities.
The process of privatization is expected to bring in much-needed capital and expertise to the power sector, potentially leading to improved service delivery and reduced costs for consumers.
