Acquisition of KE shares by Shanghai Electric: Fresh public announcement of intention to be notified today

KARACHI: Shanghai Electric Power Company has withdrawn its Public Announcement of Intention (POI) to acquire 66.40% ordinary share capital of K-Electric.

The withdrawal was made before the date of expiry as part of the legal procedure.

Shanghai Electric Power Company has informed Pakistan Stock Exchange regarding its withdrawal announcement.

PSX and K-Electric have been informed that Shanghai Electric Power Company continues to be fully committed to the transaction subject to the receipt of required approvals and will notify fresh Public Announcement of Intention through PSX on December 29.

Previously, a Pakistan Stock Exchange notification said: “We have received the public announcement of intention for acquisition of up to 66.4 percent of the shares of K-Electric Limited by Shanghai Electric Limited.”

The Karachi Electric Corporation, set up in 1913 as a public-sector company, was sold to Saudi Arabia’s Aljomaih Group in 2005, who in turn sold it to the UAE’s Abraaj Capital.

“Chinese interest is tremendous in Pakistan and the new deal would be quite attractive to strengthen cooperation under CPEC,” said Taha Javed, director of research at Alfalah Securities, referring to the China-Pakistan Economic Corridor.

“It is the largest ever private-sector acquisition in Pakistan,” said analyst Zeeshan Afzal, executive directer at Insight Securities.