Shanghai Electric Cancels K-Electric Deal
Shanghai Electric Cancels K-Electric Acquisition Deal
Karachi – Shanghai Electric has officially withdrawn from its long-standing plan to acquire a majority stake in K-Electric, Pakistan’s sole power provider in Karachi. The deal, which had been stalled for several years due to regulatory and legal hurdles, involved Shanghai Electric purchasing 66.4% of K-Electric from KES Power Limited.
In a formal announcement to the Shanghai Stock Exchange, Shanghai Electric confirmed that the $1.77 billion transaction has been cancelled. The deal had faced repeated delays as approvals from various regulatory authorities remained pending.
Back in October 2023, Shanghai Electric Power (SEP) renewed its $1.77 billion offer to acquire K-Electric’s shares. At the time, the company expressed renewed interest in taking control of the Karachi-based utility.
Shan Abbas Ashari, investment advisor for Saudi group Al-Jomaih Power Limited, told local media in Karachi that the major shareholder had hinted at selling its stake at $2 billion. He suggested that the deal with Shanghai Electric could be revisited and signed again, noting that the initial $1.77 billion offer had been made several years ago and may now be revised.
Ashari also highlighted Karachi’s growing electricity demand, which he estimated has reached 5,000 MW and could rise further if all industries were connected to K-Electric’s grid. He described Pakistan as an ideal destination for investment from Saudi Arabia and other Gulf countries due to its rapidly growing population compared to Europe. However, he acknowledged that Saudi and Kuwaiti investors faced challenges while negotiating the K-Electric deal.
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