The Privatisation Commission (PC) has asked a consortium of local companies to submit an offer for a 73 percent stake in the Karachi Electric Supply Corporation (KESC), officials said on Tuesday. The offer was made to Hassan Associates Consortium after Saudi group Kanooz al Watan, which in February offered the highest bid to acquire the stake, failed to deposit the required amount.
The group had struck a deal to buy the stake for 15.86 billion rupees ($265.6 million) but did not deposit the money despite repeated extensions of the deadline by the government, officials said.
Farooq Hassan, the chairman of the Hassan Associates Consortium, said he had received a letter of invitation from the Privatisation Commission.
"The commission has invited the consortium on June 24, but we will meet government officials on June 27," said Hassan.
"Before that, members of the consortium will meet and decide what price should be offered for acquiring the KESC."
In the bidding in February, Hassan Associates had offered Rs 9.7 billion, the second highest bid after Kanooz al Watan.
Tehsin Iqbal, secretary of the Privatisation Commission, said the government would try to get the best price from Hassan Associates.
"Both sides will negotiate, and I hope that the government will get a better price," he told Reuters.
The government plans to retain at least 26 percent of the equity for the time being.
One percent of the company has been floated on the stock exchange, and the shares closed marginally higher at Rs5.85 on Tuesday.
According to officials, KESC's transmission and distribution losses stand at 36 percent, mainly due to rampant power theft and a dilapidated distribution network.
The utility, which has about 1.7 million customers in Karachi, has been in the red for many years.
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