PM approves Shanghai Electric’s bid to acquire 64.4 percent management control in K-Electric

According to sources, the deal between Abraaj Capital and Shanghai Electric is likely to be finalized after the Prime Minister gave his approval to the proposed sale of 64.4 percent shares of K-Electric (KEL) by Abraaj Capital to Shanghai Electric.

Prime Minister has called for an emergency meeting of Cabinet Committee for Privatization for the approval of the sale. The cabinet committee meeting to be held at Prime Minister Office at 10 o clock tomorrow morning will be chaired by Prime Minister, Shahid Khaqqan Abbasi.

Abraaj Capital is looking to sell a majority stake of K-Electric (KEL) along with the management control in the company to Shanghai Electric.

Cabinet Committee will also issue National Security Certificate tomorrow.

A delegation of Shanghai Electric held a meeting with Prime Minister on 27^th March, 2018 in which the members had mentioned the delay in regulatory approvals hindering transaction to the Prime Minister.

The public intention to acquire made by Shanghai Electric in 2017 expired on 26^th March, 2018 after which the intention was renewed the Chinese company.

In a meeting held between the Shanghai Electric and Prime Minister, the delegation apprised Prime Minister of current status of acquisition process of majority stake in K-Electric and sought government’s support in accelerating the process of regulatory approval.

The Prime Minister assured the delegation that Government of Pakistan remains committed to supporting Shanghai Electric Power with a view to further liberalizing the power generation and distribution sector in the country. To this extent, he also assured the visiting delegation of the government’s commitment to enable the process to move forward subject to completion of all regulatory frameworks.