Lucky Cement-led consortium shortlisted for GEPCO bid
KARACHI: Lucky Cement, along with other major corporate entities, has been shortlisted to conduct due diligence on Gujranwala Electric Power Company Limited (GEPCO) as part of the government’s privatization process.
Lucky Cement Limited has joined a consortium to pursue the acquisition of a 51% to 100% stake in Gujranwala Electric Power Company (GEPCO), including management control. The consortium has been shortlisted for due diligence under the government’s privatisation process.
According to a disclosure submitted to the Pakistan Stock Exchange (PSX), Lucky Cement formed the consortium with Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited.
The consortium submitted an Expression of Interest (EOI) and a Statement of Qualification for the proposed acquisition. The Privatisation Commission has pre-qualified the group and other interested parties to conduct financial, technical and legal due diligence of GEPCO.
Lucky Cement Consortium Shortlisted for GEPCO Privatisation
Lucky Cement Limited and its consortium partners have been shortlisted to assess the proposed acquisition of a 51% to 100% stake in Gujranwala Electric Power Company (GEPCO), including management control. The move comes as Pakistan advances its power distribution privatisation programme.
According to a disclosure submitted to the Pakistan Stock Exchange (PSX), Lucky Cement formed the consortium with Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited.
The consortium submitted an Expression of Interest (EOI) and a Statement of Qualification for the proposed GEPCO acquisition. The Privatisation Commission has pre-qualified the group and other interested parties to conduct financial, technical and legal due diligence.
Lucky Cement Yet to Commit to GEPCO Acquisition
Lucky Cement clarified that the consortium has not entered into any binding commitment to acquire GEPCO’s equity.
The company said any potential commitment would depend on satisfactory due diligence, the required corporate and regulatory approvals, and confirmation that the transaction is commercially viable.
The government will offer the stake through a competitive bidding process under the applicable privatisation framework. For now, the consortium plans to assess GEPCO’s financial position, operations and commercial potential before making a decision.
Pakistan Targets DISCO Losses Through Privatisation
Pakistan is pursuing the privatisation of electricity distribution companies (DISCOs) to reduce financial losses and ease the burden on the national exchequer.
Many distribution companies face challenges such as electricity theft, high distribution losses, weak bill recovery and operational inefficiencies. These problems contribute to circular debt and increase the need for government subsidies.
The Finance Division has identified poor collections, operational inefficiencies and distribution losses as major contributors to power-sector circular debt.
The government also aims to attract private investment, management expertise and modern technology. Private-sector participation could improve billing systems, strengthen revenue collection, reduce electricity losses and modernise ageing distribution infrastructure.
GEPCO Privatisation Supports Pakistan’s Economic Reforms
Under the proposed model, investors would assume management control of acquired distribution companies while operating under regulatory oversight. The government expects private participation to improve efficiency, service delivery and electricity supply reliability.
The privatisation programme also forms part of Pakistan’s broader economic reform agenda and its commitments under the International Monetary Fund (IMF) programme.
The Finance Ministry has described DISCO privatisation as a key component of the IMF’s Extended Fund Facility programme. The Privatisation Commission has also highlighted improved efficiency, better service delivery and reduced losses as major objectives.
The proposed GEPCO acquisition remains at the due diligence stage. The outcome will depend on the review findings, required approvals and the government’s competitive bidding process.
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