Shanghai Electric takes back its bid to acquire major stake in K-electric

KARACHI: Shanghai Electric has taken back its offer to purchase up to 66.4 per cent stake in the K-Electric, the Pakistan Stock Exchange was informed on Monday.

The deal between the K-Electric and Shanghai Electric company was repeatedly delayed for last eight years due to regulatory approvals and liquidity constraints, sources said.

The deadline for making a firm offer for the K-Electric stake expired on April 20 and Shanghai Electric withdrawn its bid, the stock exchange informed.

K-Electric (KE) is the only electric company generates, transmits, and distributes electricity in Karachi, the largest city of Pakistan, and its adjoining areas.

The government of Pakistan owns a 24.4 per cent stake in K-Electric.

In June last year, Shanghai Electric reiterated its commitment to the deal, which was worth approximately $1.77 billion in 2016 but it would have likely to change.