The Cabinet Committee on Privatisation (CCoP) on Thursday rejected Hassan Associates (Pvt) Limited''s offer for the Karachi Electric Supply Corporation (KESC) and decided to again put it on the privatisation list to find a suitable buyer, it was reliably learnt.
The CCoP, which met here with Prime Minister Shaukat Aziz in the chair, discussed offer of Hassan Associates for KESC''s 73 percent shares, but did not find the consortium a potential buyer for the country''s second largest power company.
Hassan Associates (Pvt) Limited - the runner-up consortium - for KESC sell-off had offered to match Kanooz Al Watan''s offer of Rs 1.65 per share.
A consortium of Kanooz Al-Watan of Saudi Arabia had been the highest bidder for KESC, but it could not make payment to the government as per the schedule. This resulted in cancellation of its right to acquire KESC''s 73 percent share with the management control. The offer was inclusive of an additional mandatory investment of Rs 4.3 billion ($74 million) for KESC preference shares.
The Privatisation Commission was supportive of the KESC''s sell-off to Hassan Associates and wanted to add it in its list of privatised entities.
A few days ago, Privatisation Commission Minister Dr Abdul Hafeez Shaikh had informed newsmen in Karachi that the government was considering Hassan Associates offer for KESC.
Sources said the board of the Privatisation Commission, which met early this week in Islamabad, opposed handing over of KESC to Hassan Associates. They said the board discussed the issue in detail and after going through nitty-gritty of the transaction disagreed with the Privatisation Commission on accepting Hassan Associates offer.
The sources added that the board did not consider Hassan Associates a suitable client for such a giant organisation that could run this power company successfully after the privatisation. It recommended re-bidding of KESC to find a suitable buyer on top priority basis.
They said the CCoP also discussed PTCL transaction and approved its handing over to the successful buyer during the current month.
The CCoP directed the Privatisation Commission to accelerate the process of the privatisation of Javedan Cement Limited (JCL) and Carrier Telephone Industry (CTI).
The Privatisation Commission had already invited expressions of interest (EoIs) for these transactions.
APP ADDS: The CCoP gave a go-ahead signal for the Privatisation of Bolan Textile, Mills and Mustakhum Cement Limited.
It also approved inclusion of State Engineering Corporation (SEC) units in the privatisation programme.
Privatisation and Investment Minister Dr Hafeez Shaikh, Information Technology Minister Awais Leghari, Water and Power Minister Liaquat Jatoi, Labour, Manpower and Overseas Pakistanis Minister Ghulam Sarwar Khan, Adviser to the Prime Minister on Finance Dr Salman Shah, Planning Commission Deputy Chairman Munir Akram Sheikh, State Bank of Pakistan Governor Dr Ishrat Husain and other high officials of respective ministries, divisions and departments attended the meeting.