In a clarification to Business Recorder, Privatisation Commission sources said: "We have given the bidders one week to reconstitute the consortium and enlarge it with a minority stake to the local parties interested in purchasing the management stake of KESC.
In may be recalled that Kanooz Al Watan of Saudi Arabia had offered Rs 1.65 per share, while Hassan Associates bid was Rs 1.31 per share. Since Kanooz Al Watan defaulted in concluding the deal, despite repeated extensions, the PC as per rules offered the second highest bidder to match the Kanooz offer.
Hassan Associates consortium comprised six local investors, led by AKD Securities with 93 percent shareholding in the consortium. Hassan Associates had 5 percent and Premier Mercantile had the balance 2 percent.
The mega transaction involves a payment of Rs 18 billion to Government of Pakistan, plus investment of $250 million in KESC for upgrading the transmission system. So, collaboration with overseas investors with deep pockets is a necessity.
Al-Jumaih, just like Kanooz Al Watan, has reportedly sought the expertise of Siemens to operate the power utility in case the deal goes through successfully.