Kohat Cement joins FESCO privatization

August 31, 2026 (MLN): Kohat Cement Company Limited (PSX: KOHC), along with a consortium of prominent corporate entities, has expressed interest in acquiring a controlling stake in Faisalabad Electric Supply Company Limited (FESCO), the company disclosed to the Pakistan Stock Exchange.

According to the notice, Kohat Cement has joined hands with Hub Power Holdings Limited, Lucky Cement Limited, and Metro Ventures (Private) Limited to form a consortium for participation in the Government of Pakistan’s privatization process for FESCO.

The consortium has submitted an Expression of Interest (EOI) and a Statement of Qualification for the proposed acquisition of a 51% to 100% equity stake in FESCO, together with management control.

The disclosure was made in accordance with Sections 96 and 131 of the Securities Act, 2015 and Regulation 5.6.1 of the PSX Regulations.

Consortium pre-qualified for FESCO due diligence

Kohat Cement said the consortium, along with other interested parties, has been pre-qualified by the Privatisation Commission and shortlisted to undertake financial, technical and legal due diligence of FESCO.

The next phase will therefore focus on a comprehensive assessment of the power utility’s financial position, technical operations, legal matters and overall commercial viability.

Under the applicable privatization framework, the equity stake in FESCO will ultimately be offered through a competitive bidding process.

No binding commitment yet

Kohat Cement clarified that the latest development does not constitute a binding commitment by either the company or the consortium to acquire FESCO.

The company said any such commitment would only be made after the successful completion of the due diligence process, receipt of all required corporate and regulatory approvals, and a determination that the proposed transaction is commercially viable.

At the current stage, Kohat Cement’s participation is therefore limited to evaluating the potential acquisition opportunity and conducting due diligence.

FESCO acquisition could mark major diversification

The potential transaction would represent a significant diversification opportunity for the consortium members, particularly given that the proposed acquisition covers not only an equity stake but also management control of the power distribution company.

However, the final outcome will depend on the due diligence findings, regulatory approvals and the competitive bidding process. The consortium has not yet committed to completing the acquisition.

In essence, Kohat Cement and its consortium partners are currently evaluating FESCO rather than confirming a takeover. Any firm decision regarding the acquisition is expected only after the due diligence and approval process is completed.

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