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A pre-bid meeting of the pre-qualified bidders for the privatisation of
Heavy Electrical Complex (HEC) through the acquisition of minimum 90% shares
of Heavy Electrical Complex (‘HEC’) together with management control on an `as
is, where is’ basis, was held here today under the chairmanship of Mr. Ahmed
Jawad Secretary Privatisation Commission.
Most of the participating pre-qualified parties in the pre-bid moot have
already completed the important phase of due diligence of the transaction in
the data room. So far three parties have completed the due diligence while two
parties are in the process. The five pre-qualified parties include 1. ABB (Pvt)
Limited, Switzerland, 2. Areva T & D Holdings Ltd, SA France 3. Pak Elektron
Limited (PEL), 4. Siemens (Pakistan) Engineering Company Limited, Karachi and
5. Iljin Heavy Industries Company Limited, Korea. During the pre-bid moot, the
potential bidders were briefed about the bidding process and the queries made
by them were responded accordingly.
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. Major clients of HEC products include WAPDA, its corporatized
entities and KESC.
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.
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 Purchaser 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. 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. 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 million shall be borne by the
Privatisation Commission