Chinese state-owned power company interested in buying K-Electric

China’s state-owned Shanghai Electric Power Company Limited (SEP) has once again renewed its interest to buy a majority stake in K-Electric (KE) from the Abraaj Group, Profit Pakistan has reported.

According to the details, Shanghai Electric had agreed with Dubai-based Abraaj Group on acquiring a majority stake in K-Electric for $1.77 billion in October 2016.

However, it has now become uncertain whether the business deal will still be executed at the agreed price or will be renegotiated.

“K-Electric has received a fresh public announcement of intention from Shanghai Electric Power Company to acquire up to 66.04% voting shares in K-Electric Limited,” the company said in a notification to the Pakistan Stock Exchange (PSX) on Monday.

K-Electric’s share price dropped 2.2%, or Rs0.08, to Rs3.55 with trading in 55.56 million shares at the PSX.

The vertically integrated company posted a profit of Rs12.31 billion in the year ending June 30, 2018, up from Rs10.4 billion in the previous year.