KEL's acquisition offer by Shanghai Electric gets 90-day extension

January 22, 2024 (MLN): The deadline for the intention of Shanghai Electric Power Company Limited to acquire 18.3 million ordinary shares of K-Electric Limited (PSX: KEL) has been extended by 90 days, a notification issued by the manager to the offer, i.e. Arif Habib Limited said today.

To note, the Public Announcement of Intention (PAl) was published on July 25, 2023 to acquire 18,335,542,678 ordinary shares of KEL constituting 66.40% of total issued and paid up capital.

The parties under this transaction have taken all reasonable steps towards obtaining the regulatory approvals as required under the applicable laws of the People's Republic of China, as well as from domestic regulatory bodies as required under the laws of Pakistan.

Some of these approvals are however yet to be issued and as such the parties under this transaction cannot complete the transaction before receipt thereof, the notice said.

"Please be assured that the parties under this transaction shall continue to apply all efforts in expediting the above approvals and processes," the notice further reads.

A number of these conditions require the relevant regulatory authorities to seek internal approvals from various line ministries and departments which processes are beyond the control of the acquirer.

The deadline for making the public announcement of offer was January 21, 2024.

However, in view of the above, on behalf of the acquirer, Arib Habib Limited has intimated Securities and Exchange Commission of Pakistan and Pakistan Stock Exchange that the acquirer is extending the date for public announcement of offer by 90 days.

Therefore, the time for making the public announcement of offer in respect of the transaction is extended till April 20, 2024.

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