October 05, 2023 (MLN): China-based Shanghai Electric Power has expressed its interest in acquiring K-Electric (PSX: KEL) with an offer of $1.77 billion, Shaun Abbas Ash'ari, Investment Advisor of Saudi Group Al-Jamouiya stated in a media briefing today.
Shanghai Electric is a leading global supplier of industrial-grade eco-friendly smart system solutions with a presence around the world.
He also mentioned that if the deal with Shanghai Electric goes through, it would greatly benefit the residents of Karachi.
At present, Karachi requires a demand of 5,000 megawatts of electricity, and if all industries transition to this electricity source, the demand will increase rapidly.
Discussing the ongoing ownership dispute over K-Electric among Saudi and Kuwaiti groups, Ashari explained that Al-Jamouiya Group and NIG hold 47% of the shares in KES power, with a 30% stake in electricity.
In contrast, Asian Pak claims around 5% of the shares. He further revealed that there are over 80 current investors in IGCF, and Mashreq Bank has also confirmed that 30% of their shareholding is with IGCF.
He mentioned that the number of shares Asian Pak holds in the electricity board corresponds to the proportion of their shares, and they have a member on the board who is ready to cooperate, provided that any Pakistani investor who wishes to join us does so through legal means.
He highlighted Pakistan as an ideal destination for Saudi and other Gulf nations' investment, stating that the decreasing population in Europe makes it less attractive, whereas Pakistan offers better returns.
On the other hand, he noted that it has become challenging for foreign companies to repatriate their profits, but the announcements made by the SIFC regarding the facilitation of One Window Operation and ease for foreign investors are promising.
Al-Jamouiya’s investment advisor stated that they will soon meet with SIFC authorities. While the Al-Jamouiya Group's matter was discussed in the previous SIFC meeting, no concrete steps have been taken yet.
At present, K-Electric's board is fully functional with board meetings being held, and has also submitted plans to Nepra regarding heavy investment in Karachi.
Copyright Mettis Link News
Posted on: 2023-10-05T10:26:46+05:00
