Waves keen to buy Heavy Electrical Complex from government

• Waves shows interest in buying Heavy Electrical Complex
• In November last year, the Cabinet Committee on Privatisation approved the transaction structure for the divestment of 96.6% shares of HEC
• This was the seventh transaction approved since the start of the privatisation plans adopted in October 2018

KARACHI: Waves Singer Pakistan is eager to acquire 96.6% shares of Heavy Electrical Complex from the government, it said Monday.

“The board of directors of Waves Singer Pakistan Limited (WSPL) has approved submission of an expression of interest (EOI) for the acquisition of 96.6 percent shares in Heavy Electrical Complex (Private) Limited (HEC) from the Government of Pakistan by way of privatization process,” a bourse filing read.

In November last year, the Cabinet Committee on Privatisation approved the transaction structure for the divestment of 96.6% shares of HEC. 

The privatization commission is ready to achieve its specified objectives. 

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This was the seventh transaction approved since the start of the privatisation plans adopted in October 2018, The News reported.

According to the commission, HEC is located in Hattar Industrial Estate, Haripur in close proximity to the CPEC route, a mere two kilometres from Kot Najeebullah Interchange on the Hazara Expressway. 

This gives HEC ready access to several key customers, including electricity distribution companies. Approximately 20 acres of additional land is available for diversification and expansion. HEC has a high quality power transformer manufacturing facility with an annual production capacity of 3,000 MVA.

“The power sector in Pakistan is rapidly growing with further generation capacity being added and more investment to be made in the transmission and distribution network presenting significant potential to expand and diversify into distribution transformers, power transformers,” AB Core CEO Khurram Schehzad was quoted as saying by the publication.

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He said HEC is a high potential company and this transaction, if closes, would be the best investment for Waves Singer Pakistan.

As at June 30, 2020, HEC has a paid up capital of Rs1.46 billion and net equity of Rs2.52 billion. Total assets of HEC amount to Rs3.65 billion, primarily comprising land, building and plant and machinery of Rs2.55 billion.