Cabinet Committee on Privatisation Approves Transaction Structure for Karachi Electric Supply Corporation

Strategic Insights -

The Cabinet Committee on Privatisation (CCoP) has approved a transaction structure for the sale of 51% to 73% shares of the Karachi Electric Supply Corporation (KESC) to a strategic buyer, paving the way for the privatisation of the utility. The decision was made during a meeting chaired by Prime Minister Shaukat Aziz, who emphasized the importance of increasing efficiency and bringing relief to consumers. The bidding for KESC is scheduled to take place in December 2004. The committee also approved the inclusion of United Bank Ltd's (UBL) Initial Public Offering (IPO) in the privatisation programme and directed the Privatisation Commission to give preference to small applicants.

Key Takeaways:

  • The Cabinet Committee on Privatisation (CCoP) approved the transaction structure for the sale of 51% to 73% shares of KESC to a strategic buyer.
  • The bidding for KESC is scheduled to take place in December 2004.
  • Prime Minister Shaukat Aziz emphasized the importance of increasing efficiency and bringing relief to consumers through the privatisation of the utility.
  • The CCoP also approved the inclusion of UBL's IPO in the privatisation programme and directed the Privatisation Commission to give preference to small applicants.
  • The committee gave approval for the sale of 51% equity of National Refinery Limited (NRL) and the sale of ICP Shell Company as an ongoing concern.
  • The land and building of Lasbela Textile Mills may be given to the Balochistan government for establishing a university.
  • The Privatisation Commission was directed to sell the plant and machinery of the unit separately.

Statistics:

  • 51% to 73% shares of KESC are to be sold to a strategic buyer.
  • The bidding for KESC is scheduled to take place in December 2004.
  • 51% equity of National Refinery Limited (NRL) is to be sold.
  • ICP Shell Company is to be sold as an ongoing concern.
  • The land and building of Lasbela Textile Mills covers an unspecified area, but it may be given to the Balochistan government.

Sources:

  • Asia Pulse, "Cabinet Committee on Privatisation Approves Transaction Structure for Karachi Electric Supply Corporation" (October 22, 2004)
  • PPI (no date mentioned)