Karachi, Sept 3: The Cabinet Committee on Privatisation (CCoP), headed by Prime Minister Shaukat Aziz, in its meeting on Thursday approved the matching bid at rate of Rs1.65 per share offered by Hasan Associates for 73 per cent shares of the Karachi Electric Supply Corporation (KESC) with a condition that the original members of the consortium will be given opportunity to join again the fold and share the ownership.

According to the well-placed and authoritative sources in Islamabad the CCoP has approved the highest matching bid in principle. The sponsor has, however, been asked to solicit consent of the two original investors of the consortium for sharing the ownership of the KESC.

“In case, the original investors are willing to rejoin the Hasan Associates, they will be welcome in the fold,” the source said while pointing out that they would be accommodated in the KESC ownership as per ratio of their investment. If they were not ready to join the fold, the Hasan Associates with Riyadh-based Saudi investor the Al Jamaih Holding Company as the leading investor will be given the ownership after complying with the formalities.

Hasan Associates had offered a bid of Rs1.01 for 73 per cent shares of the KESC on February 4 last auction in which the Saudi group Kanooz al Watan offered the highest bid at Rs1.65 a share. The highest bid involved payment of about Rs20.24 billion.

Kanooz al Watan later backed out from the bid. The Privatization Commission then approached Hasan Associates to match the highest bid sometimes in June. At least two members of the Group are said to have agreed to pay at Rs1.32 a share which is the reference price of the KESC. But these two investors considered share price at Rs1.65 billion exorbitantly high.

Hasan Associates then inducted the Riyadh-based Saudi group Al Jamaih Holding Company as the leading investor and German multinational Siemens as Technical partners and agreed to match the bid.

The PC discussed the matching highest bid on Tuesday, and on Thursday the CCoP discussed it and approved it in principle. There appear to be some confusion in Islamabad whether the consent of the two original investors of Hasan Associates has to be obtained within a week or more.

Inquiries made with the relevant quarters as to why there appears to be some confusion, a well-placed source said that the minutes of the CCoP are prepared by the Cabinet Division. These minutes were not received till Saturday evening.