Shanghai Electric delegation visits Prime Minister in Islamabad

A delegation of Shanghai Electric Power led by Mr. Wang Yundan, Chairman Shanghai Electric Power (SEP) called on Prime Minister Shahid Khaqan Abbasi in Islamabad yesterday.

The delegation apprised the Prime Minister of the 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.

Furthermore, yesterday in a material information notice addressed to the bourse, K-Electric announced that the Chinese multinational power generation and electronic equipment manufacturing company, Shanghai Electric, public announcement of intention to buy the proposed 66 percent stake in K-Electric stands withdrawn.

The company had previously shown interest in the Karachi Power Generation company K-Electric on June 29th 2017 to acquire up to 18,335,542,678 ordinary shares (66 percent) stake in K-Electric.

However, the offer was not made within the stipulated time which expired on 26th March, 2018 on the basis that certain regulatory and other approvals for the transaction remain outstanding. The company notice further mentioned that “[…] pursuant to Regulation 21(1)(e) of the Listed Companies read with the Securities Act 2015, we hereby give notice that as of the Expiry Date, the Public Announcement of Intention (PoI) stands withdrawn.”

The notice also mentioned that, “As the Acquirer continues to be fully committed to consummate the Transaction pending receipt of regulatory and other approvals, the acquirer shall make a fresh public announcement of intention in accordance with the prescribed formalities immediately with effect from the Expiry Date.”