Lucky Cement-led consortium qualifies for GEPCO privatisation due diligence

Lucky Cement has told the Pakistan Stock Exchange that a consortium it leads, which also includes Hub Power Holdings, Kohat Cement and Metro Ventures, has been cleared for the next stage of GEPCO's privatisation. According to the company's material information notice filed on Wednesday, the group submitted an expression of interest and a statement of qualification seeking between 51% and 100% of the Gujranwala distribution company's equity, along with management control. The Privatisation Commission pre-qualified the group, which is now set to undertake financial, technical and legal scrutiny.

The Privatisation Commission Board approved nine parties for prequalification on October 5 at its 259th meeting, after evaluating their submissions against set criteria. Those nine include three Turkish energy firms, Engro Energy, Sapphire Fibres, a Hub Power consortium and an AKD Securities consortium, along with several other groups. Two of the original 11 applicants fell away: K-Electric withdrew its interest in writing, while Al Sharif Contracting & Commercial Development could not supply the required documents.

Lucky Cement stressed that neither it nor the consortium has entered into any binding commitment to buy GEPCO shares. Any decision to proceed depends on satisfactory due diligence, corporate and regulatory approvals, and a finding that the deal is commercially viable. For now, the consortium only plans to conduct due diligence and assess viability, with the stake to be offered through competitive bidding.