Pursuing acquisition of FESCO: Nishat Group forms 7-company consortia

KARACHI: Nishat Group has formed a seven-company consortium to pursue the acquisition of Faisalabad Electric Supply Company (FESCO), marking an early move in what is expected to be one of Pakistan’s most significant power sector privatisation transactions.

Separate material information notices submitted to the Pakistan Stock Exchange (PSX) on Thursday showed that Nishat Mills Limited, Pakgen Limited, Lalpir Limited, Nishat Power Limited, Nishat Chunian Power Limited, Kohinoor Energy Limited and Pak Elektron Limited (PEL) have each received the Request for Statement of Qualification (RSOQ) issued by the Privatisation Commission for the proposed divestment of FESCO.

The companies said their respective boards of directors had approved participation in a consortium to pursue the transaction, subject to the applicable privatisation process.

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According to the disclosures, the consortium has irrevocably designated Pakgen Limited as the lead consortium member and authorised it to act on behalf of all consortium participants in matters relating to the proposed acquisition.

The companies clarified that their participation at this stage is limited to the qualification process and does not constitute a binding commitment to acquire FESCO. The proposed transaction remains subject to pre-qualification by the Privatisation Commission, due diligence, regulatory approvals and the fulfilment of all applicable legal and corporate requirements.

FESCO is among the power distribution companies the federal government plans to privatise as part of its broader programme to improve efficiency, attract private investment and reduce the financial burden of state-owned enterprises.

The consortium’s formation represents one of the first major expressions of private sector interest in the planned divestment of the Faisalabad-based power distribution company.

Copyright Business Recorder, 2026