Lucky Cement Limited, along with Hub Power Holdings Limited, Kohat Cement Company Limited and Metro Ventures (Private) Limited, has formed a consortium and submitted an Expression of Interest and Statement of Qualification for the proposed acquisition of a 51% to 100% equity stake in Faisalabad Electric Supply Company Limited (FESCO), including management control. The consortium is participating in the privatisation process initiated by the Government of Pakistan for the divestment of the electricity distribution company.
The consortium has been pre qualified by the Privatisation Commission along with other interested parties and has been shortlisted to conduct financial, technical and legal due diligence on FESCO. The due diligence stage will allow the participating parties to assess the company’s financial position, operational structure, technical requirements and legal matters before deciding whether to proceed further with a potential acquisition.
The proposed transaction involves the government offering between 51% and 100% of FESCO’s equity along with management control. However, the eventual stake to be transferred will be determined through the applicable privatisation process. Under the relevant privatisation laws, the equity stake in FESCO will ultimately be offered through a competitive bidding process, meaning that pre qualification and due diligence do not by themselves constitute an acquisition.
Lucky Cement clarified that neither the company nor the consortium has entered into any binding commitment with any party regarding the purchase of equity in FESCO. The consortium’s current participation is limited to evaluating the opportunity and carrying out the necessary due diligence. Any decision to enter into a binding transaction would depend on the outcome of this assessment and the completion of the required approvals.
The consortium will conduct a comprehensive review of FESCO as part of the due diligence process. The financial assessment is expected to examine the company’s financial position and relevant commercial factors, while technical and legal reviews will provide the participating companies with further information required to assess the proposed investment. The consortium will use the findings of these assessments to determine whether the potential acquisition is commercially viable.
Lucky Cement further stated that any binding commitment related to the acquisition would only be considered after satisfactory completion of the due diligence exercise, receipt of all applicable corporate and regulatory approvals and a determination that the proposed transaction meets the consortium’s commercial requirements. This means the current stage does not represent a final investment decision by Lucky Cement or its consortium partners.
FESCO is among the electricity distribution companies being considered under Pakistan’s broader privatisation programme. The participation of a consortium comprising companies from the cement, power and investment sectors places the potential transaction among the latest private sector efforts to evaluate opportunities within the country’s electricity distribution industry.
For the consortium members, the due diligence phase will be important in determining the operational and financial viability of FESCO and assessing the requirements associated with taking management control of the company. The consortium’s evaluation will precede any potential decision to participate in the competitive bidding process for the government’s offered equity stake.
At this point, Lucky Cement and its consortium partners have not committed to acquiring FESCO. Their participation is currently focused on reviewing the opportunity and determining whether the proposed transaction can meet commercial, regulatory and corporate requirements. The outcome of the due diligence process will therefore play an important role in deciding whether the consortium proceeds to the next stage of the privatisation process.
The Privatisation Commission’s pre qualification allows the consortium to move forward with its assessment alongside other shortlisted interested parties. Following the due diligence stage, eligible parties will have the opportunity to participate in the competitive bidding process in accordance with the applicable rules governing the divestment.
The development marks an initial step in the consortium’s consideration of FESCO, rather than a completed transaction. Any eventual acquisition will depend on the findings of the financial, technical and legal reviews, the required approvals and the outcome of the competitive bidding process. For now, Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures remain focused on evaluating the potential investment and determining whether FESCO represents a commercially viable opportunity.
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