As a leap forward toward the privatization of state-owned enterprises, the Heavy Electrical Complex has been sold to Ms. IMS Engineering Pvt. Ltd., the successful bidder offering the highest bid of Rs. 99.99 per share. The total transaction amount is Rs 1.41 billion for 1,41,0001, i.e., 96.6%, shares.
The Privatization Commission conducted the bidding on Monday in the presence of Federal Minister for Privatization, Muhammad Mian Soomro, and Chairman Privatization Commission, Saleem Ahmed.
The Privatization Commission had fixed a reserve price of Rs. 98.32 per share for the bid of Heavy Electrical Complex. Three companies were shortlisted for the bidding process.
IMS Engineering, a Karachi-based company incorporated in the Securities & Exchange Commission of Pakitan in 1997, remained successful in the bidding, wherein Waves Singer Pakistan Ltd. offered Rs. 26.25 per share with Pakistan Electron Limited turning out to be the lowest bidder announcing Rs 17.73 per share.
Addressing the ceremony, Federal Minister, Muhammad Mian Soomro, said that the process of privatizing the state-owned enterprises (SOEs) was starting with 96.6% shares of Heavy Electrical Complex sold out. He added that other institutions including Pakistan Steel Mills (PSM) and House Building Finance Corporation (HBFC) would also be privatized and the process would be initiated soon. He rejected the impression that the privatization process was slowed down, yet the government was following the timeframe set for the privatization of institutions.
The transactions modalities and payment terms would be finalized once the transaction is approved by the Privatization Commission board, followed by approval from the Cabinet Committee on Privatization and then the federal cabinet.
It is worth mentioning here that the Heavy Electrical Complex, a Private Limited Company in Hattar, Haripur, was added to the Active Privatization List in August 2019 and the federal cabinet approved the transaction structure in December 2020. It falls under the State Engineering Corporation (SEC), which is fully owned by the Ministry of Industries and Production.
The company had commenced its commercial operations in 1998. The prime business of this firm has been to manufacture high-voltage electric transformers and to engage in services for testing, repairs, and onsite commissioning with the Distribution Companies (DISCOs) its target customers.
Results depend on people. This is clear evidence of what is possible when you put right people in the job. Salim Ahmed was appointed Chairman just weeks ago!
Privatization is the an open admittance of govt. incompetence. When high revenue earning govt. industries are turned into loss bearing ones, and then they again become profitable after privatization is a clear sign that our governments are failures at management.
Privatization is not a solution but rather admittance of defeat, like a man selling of his possessions to pay off loans.
It is not the government’s job to run industries. They should govern and regulate only. Businesses are only to be run by the private sector to generate jobs and export.