Nishat-led consortium enters race for FESCO acquisition

Pakistan’s Nishat Group has formed a seven-company consortium to pursue the acquisition of Faisalabad Electric Supply Company, marking an early sign of private-sector interest in one of the government’s major planned power distribution privatisations.

Separate material information notices submitted to the Pakistan Stock Exchange on Thursday showed that Nishat Mills Limited, Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Chunian Power Limited, Kohinoor Energy Limited and Pak Elektron Limited have received the Request for Statement of Qualification issued by the Privatisation Commission for the proposed divestment of FESCO.

The companies said their respective boards had approved participation in the consortium, subject to the applicable privatisation process.

The consortium has irrevocably designated Pakgen Limited as its lead member and authorized it to represent the participating companies in matters related to the proposed acquisition, according to the disclosures.

The companies stressed that their participation at the current stage is limited to the qualification process and does not constitute a binding commitment to acquire FESCO.

The proposed transaction remains subject to pre-qualification by the Privatisation Commission, due diligence, regulatory approvals and the fulfillment of applicable legal and corporate requirements, they said.

FESCO is among the power distribution companies targeted by the federal government for privatisation as part of efforts to improve operational efficiency, attract private investment and reduce the financial burden associated with state-owned enterprises.

The formation of the Nishat-led consortium represents one of the first major expressions of private-sector interest in the planned sale of the Faisalabad-based distribution company.

The government has been pursuing reforms in the power distribution sector as persistent financial losses, high distribution inefficiencies and the accumulation of circular debt continue to weigh on Pakistan’s energy sector.

The FESCO transaction is expected to attract interest from strategic and financial investors as the government advances its broader privatisation programme.