Pakistan’s Cabinet Committee on Privatisation (CCOP) has approved a bid of Rs 20.24 billion for a 73% stake in the Karachi Electric Supply Company (KESC). The winning offer came from a consortium of Kanooz Al-Watan of Saudi Arabia and Siemens of Germany.

The government has injected some Rs108 billion (€1.4 billion) in KESC during the last three years in a bid to keep the beleaguered company afloat in the face of an annual loss of about Rs 15 billion (€196 million). The new investor will also invest in upgrading the system. The consortium is to pay Rs 15.85 billion (€207 million) within a month of the issuance of the Letter of Acceptance and will provide a further Rs 4.3 billion (€56 million) in the form of preference shares.

The government of Pakistan will retain a minimum 26% stake in KESC.