KARACHI: K-Electric, the sole power distributor in Karachi, has withdrawn its handout to sell off 66.4 percent shares to Shanghai Electric, ARY NEWS reported.
According to a fresh handout issued by the K-Electric, the power utility said that it previously had to sell 66.4 percent of its shares to Shanghai Electric as the latter wanted to buy the Karachi-based power company.
Shanghai Electric will submit a fresh proposal for the purchase 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.
Pakistan suffers from major power shortages that sap economic growth. Analysts hope the Chinese acquisition can improve the utility’s efficiency and reduce blackouts.
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