Sapphire Fibres Limited has entered the race for the privatization of Gujranwala Electric Power Company (GEPCO), adding to its existing interest in Faisalabad Electric Supply Company (FESCO) as the government moves ahead with the privatization of its first batch of power distribution companies.
In a disclosure to the Pakistan Stock Exchange dated August 25, Sapphire Fibres said it had obtained the Request for Statement of Qualification issued by the Privatization Commission for the divestment of GEPCO.
The company’s board has approved its participation in the transaction, although it said no binding obligation to bid has been assumed at this stage and participation remains subject to prequalification and the required corporate and regulatory approvals.
Sapphire also said it may form a consortium once the relevant approval is granted. The company will continue to keep the stock exchange informed about material developments related to its participation in the transaction.
The move comes after Sapphire joined the race for FESCO earlier this month. GEPCO is part of the same first batch of DISCOs being privatized by the government, alongside FESCO and Islamabad Electric Supply Company (IESCO). The government is offering investors the opportunity to acquire between 51 percent and 100 percent ownership along with management control as part of its broader power sector reform and privatization program.
The government has said the privatization of the three DISCOs is aimed at improving operational efficiency, modernizing distribution infrastructure, reducing losses and strengthening customer service. The Privatization Commission has also been working on restructuring the companies before the transactions to make them commercially viable and more attractive to private sector investors.
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