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The Privatisation Commission ('PC') Government of Pakistan (GOP) invites
Expression of Interest (EOI) from prospective investors (Mechanical
Engineering, Electrical Engineering and or Industrial Companies and groups,
consortium of investors with demonstratable ability to own, efficiently manage
and operate the Company) for the acquisition of minimum 90% shares of Heavy
Electrical Complex ('HEC') together with management control on an `as is,
where is' basis.
Heavy Electrical Complex (HEC) is one of the industrial units of State
Engineering Corporation (SEC) engaged in the manufacturing of power
transformers of different types (total annual capacity 3000 MVA) with primary
voltage rating of 66 and 132 KV. In addition, the HEC undertakes repair and
refurbishment of old and damaged power transformers upto 500 KV. HEC was
incorporated as a private limited company in 1991 and commenced full-scale
commercial operation in 1997.
HEC is located in Hattar Industrial Estate about 65 Km from country's capital
Islamabad. HEC is spread over an area of 81.379 acres. A total of 63 acres of
land is included in the transaction out of which 20 acres is non-core land for
expansion.
HEC has six main manufacturing shops namely Machine shop, Winding shop,
Insulation shop, Core shop, Fabrication shop and Assembly shop. In addition
HEC has an oil purification shop, high voltage test laboratory equipped with
250 tonne overhead traveling crane. HEC can diversify its manufacturing range
by including other products such as instrument transformers, high voltage
circuit breakers and other grid stations equipped for meeting demand of the
products in domestic and foreign markets. Major clients of HEC products
include WAPDA, its corporatized entities and KESC.
The interested Investors have been asked to submit an Expression of Interest
('EOI') (in duplicate) latest by November 22, 2006 together with a
non-refundable processing fee of US$ 5,000/- or PKR 300,000/ and information
such as, Name of Company / group and its background information, Audited
financial statements for the preceding three years, Details of ownership/group
structure along with copies of Computerized National Identity Card (CNIC) of
the Directors / Partners, Name, Address, Telephone, Mobile, Fax, Email of the
Focal Person to be contacted, Pending litigation against the Company and the
Director(s).
All the parties, which shall submit EoI, would be sent Request of Statement of
Qualification for response, which shall form the basis of pre-qualification.
Information Memorandum, Bid Documents and Time Frame for the Pre-Bid
conference and bidding date will be provided to Pre-qualified parties only.
The Privatisation Commission has indicated that the Purchaser shall continue
to operate company's manufacturing facility and shall not in any way abandon,
cease to operate or otherwise shutdown the existing Company manufacturing
facility. The successful buyer will not in any form or manner dispose off,
alienate transfer any or all land in the name of the Company without the prior
consent of PC.
It further states that the cost of Golden Hand Shake Scheme (GHS) for
permanent workers and Voluntary Separation Scheme (VSS) for the executives
will be shared equally between the new buyer and the Privatisation Commission
and that the bidder shall bid on the basis of audited accounts of June
2006 and may also factor the latest un-audited accounts available prior to the
bidding. The loan from Government of Pakistan amounting to Rs. 1,002 million
will be written back in the books of HEC and tax impact after adjustment
brought forward losses of Rs. 376.708 shall be borne by the Privatisation
Commission, says an official hand out.
All terms and conditions relating to privatisation of HEC shall be
communicated to all bidders from time to time prior to the bid date.
HEC's financial summary is as follows:
(Rupees in Thousand) FY 04 FY 05 FY 06
Net Sales 177,839 374,205 587,796
Operating Profit / Loss (31,132) (14,955) 24,260
Net Profit / Loss 305,642 (26,571) 5,711
Total Assets 1,203,457 1,384,548 1,517,648
Equity 120,833 92,221 96,024
The Government of Pakistan, Privatisation Commission reserves the right not to
respond to any request for preliminary or other information.
Documentation accompanying and comprising an Expression of Interest as
provided by any investor or consortium shall not be reclaimable or returned.
This advertisement is not intended to be, and should not be construed as: (a)
an offer or invitation to acquire any securities or assets of HEC; and (b) any
representation or warranty, express or implied, with respect to any statement
made herein.