KARACHI: The Board of Directors of Waves Singer Pakistan Limited (WSPL) have 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.
The EoI will be followed by a detailed due diligence process (if the Company is shortlisted) and completion of other necessary formalities. The results of the due diligence shall be placed before the Board for review and discussion and to resolve/approve further course of action in respect of the Transaction.
In November last, Cabinet Committee on Privatisation (CCoP) approved the transaction structure for the divestment of 96.6 per cent shares of Heavy Electrical Complex (HEC).
According to Privatization Commission, HEC is located in Hattar Industrial Estate, Haripur in close proximity to the CPEC route, a mere 2 KM from Kot Najeebullah Interchange on the Hazara Expressway (E35).
This provides HEC ready access to several key customers including electricity distribution companies, while 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 (T&D) network presenting significant potential to expand and diversify into distribution transformers, power transformers of voltages higher than 132KV and allied grid station, electrical equipment, using base plant facilities.
Waves Singer Pakistan Limited came into being after the acquisition of Cool Industries (Pvt) Limited by Singer Pakistan during 2017.
For nine-month period ended September 30, 2020, Waves Singer Pakistan posted a net profit of Rs90 million, down 71 percent from the profit of Rs313 million in the corresponding period previous year.
HEC manufactures power transformers of 132KV and 66KV with unit rating ranging from 6.3 – 40 MVA. Due to limited local production of power transformers currently, a significant part of the annual demand is met through import.
The company also offers power transformer repair / rehabilitation services to WAPDA / DISCOs / K-Electric / Industrial Consumers and has developed extensive capabilities to undertake the repair of up to 500KV power transformers (power capacity ranging from 71 MVA to 200 MVA). This is currently the highest voltage in the power system of the country.
Moreover, HEC is also offering erection, testing and commissioning services of power transformers at site. Since inception, HEC has manufactured and supplied 335 power transformers along with rehabilitation / repair of 242 power transformers.