This refers to the news item published in a Section of Press dated 30th April 2015 regarding the sale of the Heavy Electrical Complex (HEC).

It is clarified that the statement given that the HEC is worth Rs 1.5 billion and has been sold merely for Rs 250 million in cash is misleading and factually incorrect. The reality is that M/s Deloitte, Privatisation Commission appointed ‘Valuator’ for the transaction, had recommended that the representative sale price range that should be considered for purpose of setting up the ‘reserve price’ should be between Rs. 455 million to Rs. 978 million. Accordingly, considering the recommendations of the PC Board and in light of the M/s Deloitte Valuation Report, the Cabinet Committee on the Privatisation (CCoP) approved the sale of HEC for a total sale price of Rs 1095 million, inclusive of cash payment, transfer of bank liabilities, surrendering of ‘Deferred Tax’ and ‘Sales Tax Refund’ rights.

Furthermore, it is clarified that there is no restriction on any perspective bidder (International or Domestic) to incorporate a company in Pakistan prior to the acquisition of a business. The successful bidder would be obligated to fulfil all statuary and mandatory requirements after entering into the Sale Purchase Agreement (SPA).

The Privatisation Commission is fully committed to ensure the highest standards of integrity and transparency in conducting all its transactions.