Commission agrees to provide financial advising services for HESCO and SEPCO’s privatisation

In order to involve the private sector in the privatisation of two electricity distribution companies, Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), the Privatisation Commission signed a Financial Advisory Services Agreement (FASA) with Raiffeisen Investment Finansal Danismanlik Hizmetleri Limited Sirketi on Thursday.

Among the financial advice firms that took part in the bidding process, Raiffeisen Investment was chosen through a competitive process to be the top-ranked Financial Adviser (FA).

The appointment procedure for the Financial Adviser for the second group of distribution firms (DISCOs) being considered for privatisation comes to an end with the signing.

As the sell-side financial adviser under the FASA, Raiffeisen Investment will conduct thorough sell-side due diligence, market sounding, and communication with possible investors.

In accordance with the government’s privatisation framework and relevant regulations, the FA will also assist the Privatisation Commission in organising and promoting the transactions as well as in carrying out an open and competitive bidding procedure.

Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) are the first three DISCOs to be privatised.

The government’s ongoing commitment to enhancing service delivery, efficiency, and financial sustainability in the electricity distribution sector through private sector engagement is demonstrated by the inclusion of HESCO and SEPCO in the second batch.

Muhammad Ali, the Prime Minister’s Privatisation Advisor, spoke at the event and said he had great faith in Raiffeisen Investment’s abilities and knowledge to help the Commission get the best results possible from these deals.

He pointed out that a credible privatisation process, investor trust, and value maximisation all depend on hiring a skilled, highly regarded FA.

In order to improve consumer services, lower losses, and fortify governance in the electricity distribution system, the Privatisation Commission reaffirmed its commitment to carrying out the DISCOs’ privatisation program in a timely, professional, and transparent way.