Kohat Cement-Led Consortium Prequalified for IESCO Acquisition
KARACHI: Kohat Cement Company Limited and its consortium partners have been prequalified to participate in the IESCO privatisation process. The consortium includes Hub Power Holdings Limited, Lucky Cement Limited and Metro Ventures (Private) Limited.
In a material information notice submitted to the Pakistan Stock Exchange (PSX), Kohat Cement said the consortium had submitted an Expression of Interest (EOI) and a Statement of Qualification to acquire a 51% to 100% stake in Islamabad Electric Supply Company (IESCO), along with management control.
The Privatisation Commission has shortlisted the consortium, along with other interested parties, to conduct financial, technical and legal due diligence on IESCO.
The proposed acquisition is part of the government’s privatisation process. The sale of IESCO shares will take place through competitive bidding in accordance with applicable privatisation laws.
Kohat Cement clarified that neither the company nor the consortium had entered into a binding agreement to acquire shares in IESCO.
The company said any potential acquisition would depend on the successful completion of due diligence, the receipt of relevant corporate and regulatory approvals, and confirmation that the transaction was commercially viable.
Government offers IESCO
The government is offering IESCO for divestment through the privatisation process. The proposed equity stake will ultimately be offered through a competitive bidding process in accordance with applicable privatisation laws.
Kohat Cement clarified that neither the company nor the consortium had entered into any binding commitment with any party to acquire an equity stake in IESCO.
It added that any potential acquisition would be subject to satisfactory completion of due diligence, receipt of all applicable corporate and regulatory approvals, and a determination that the transaction was commercially viable.
At the current stage, the consortium intends only to undertake a comprehensive due diligence exercise and evaluate the commercial viability of the potential acquisition.
The disclosure was made under Sections 96 and 131 of the Securities Act, 2015, and Regulation 5.6.1 of the PSX Regulations.
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