Sapphire Fibres Limited (PSX: SFL) has entered the race to acquire Faisalabad Electric Supply Company (FESCO), announcing its intention to participate in the utility’s ongoing privatization process.
The company disclosed the development through a notice submitted to the Pakistan Stock Exchange (PSX), stating that it has obtained the Request for Statement of Qualification (RSOQ) issued by the Privatization Commission for the proposed divestment of FESCO.
Sapphire Fibres’ board of directors has approved the company’s participation in the transaction. However, the company clarified that it has not assumed any binding obligation at this stage.
Its participation remains subject to prequalification by the Privatization Commission, along with other necessary corporate and regulatory approvals.
Sapphire Fibres also said it may form a consortium for the transaction after securing the required approvals. The company will notify the stock exchange about any material developments concerning its potential participation.
The development comes just a day after a Nishat Group-led consortium announced its intention to bid for FESCO. The Nishat-led group includes several listed companies that have approved participation in the privatization process.
The Privatization Commission is seeking investors for the sale of a majority stake in FESCO along with management control.
FESCO is one of Pakistan’s major power distribution companies and supplies electricity to several districts in Punjab, including Faisalabad, Jhang, Toba Tek Singh, Chiniot, Sargodha, Mianwali, Khushab and Bhakkar.
The proposed transaction is part of the government’s broader plan to privatize state-owned power distribution companies, attract private-sector investment and improve efficiency in the power distribution sector.
With Sapphire Fibres and the Nishat-led consortium now showing interest, competition for control of FESCO is expected to intensify as the privatization process moves toward the prequalification stage.
