The Shanghai Electric Power Company has announced its intention to purchase a stake in the K-Electric power company.
According to a letter sent by the Shanghai Electric to the Pakistan Stock Exchange(PSX), it will acquire 66.40% percent stake in the firm and will directly or indirectly purchase 18.3 billion ordinary shares of the power utility company.
Arif Habib Limited has been appointed to manage the offer, and the public announcement will be published in national English and Urdu newspapers on 2nd September.
The news come a week after its current owner UAE-based Abraaj Group plans to divest its stake in K-Electric and informed the Pakistan Stock Exchange (PSX). Abraaj Group’s stake in the company has been valued at $1.5 billion.
Earlier, the K-Electric has dismissed acquisition rumours as completely speculative and baseless. The government of Pakistan owns the remaining 24 percent stake in K-Electric.
The financial situation of the company known as Karachi Electric Supply Corporation (KESC) improved ever since acquisition by the Abraaj Group as the company posted a profit in 2012 for the first time in seventeen years.
The company was rebranded as K-Electric but despite that there were complaints of excessive billing and other consumer woes which has given optimism that they were be redressed by the new acquiring company.
The Chinese state-backed company was vying for K-Electric along with Chinese clean-energy group Golden Concord Holdings Ltd., French utility Engie SA and at least one investment fund.
