PSM revival: FAs submit first draft of due diligence report

28 Apr, 2020

The COVID-19 has impacted the pace of ongoing transactions but the work on all fronts have been carried out with requisite precautions, and it is expected that after the pandemic ends the desired pace to complete the transactions will be attained/resumed, the Privatisation Division stated Tuesday. The transaction committee will review the DD in the upcoming meeting on the PSM.

First meeting to that effect was held on April 15th this year via video link owing to the pandemic, which was followed by second review meeting on 23rd April. The revival of the PSM potential partners is also being approached. The Privatization of Heavy Electrical Complex (HEC) is also under way and revised draft of due diligence is received on April 22nd, 2020.

This has pushed the timeline for all succeeding deliverables by a month. The Covid-19 impact on transaction implementation is currently uncertain but transaction structure is to be formalised so that it can be launched for implementation, quickly post-Covid-19, the Privatisation Commission stated on Tuesday.

The privatization of two RLNG power plants - Haveli Bahadar Shah and Balloki, is at an advanced stage.

PC and financial advisors are working with pre-qualified parties and their advisors to complete buyer-side due diligence.

Virtual Data Room (VDR) has already been established by the PC to provide required information to investors to participate in the pre-bid meeting, which will be convened with mutual consent soon.

Moreover, conference calls are repeatedly being arranged by privatisation to answer the queries of investors and to furnish them with requisite information and assistance to proceed with the transaction.

Work on Guddu and Nandipur power plant is also in progress and the DD by the advisors (UBL and EY) is actively being pursued, Nandipur management team has been asked to furnish the financial, technical, legal and regulatory data to the ministry for self side due diligence.

As far as Guddu power plant is concerned three interested parties were shortlisted to be appointed as financial advisors. Technical and financial proposals have been received to that effect.

Moreover, the issues related to gas allocation, license modification and release of charges have been referred to the Power Division.

Copyright Business Recorder, 2020

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