After expiry of the public announcement of intention by Shanghai Electric to acquire K-Electric (KEL), the company (Shanghai Electric) today renewed the announcement to acquire 66.4 percent share in in Karachi’s Power Supply giant (KEL).
The original public announcement of intention made on June 29, 2017 and the subsequent withdrawal on 26 March, 2018 on account of lapse in the prescribed time period were both released on the exchange on their respective dates. The request was withdrawn on the basis of delay in regulatory approvals from respective agencies of Pakistan.
The case was also taken up by a visiting delegation from Shanghai Electric that called upon Prime Minister Shahid Khaqqan Abbasi 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.
In a recent development, the company via their intermediary Arif Habib Limited (AHL) today announced that, “we are pleased to submit a fresh Public Announcement of Intention by Shanghai Electric Power Company Limited to directly or indirectly acquire up to 18,335,542,678 ordinary shares of K-Electric Limited representing 66.40 percent of the total issued share capital”.
SEP was established in 1882 and then transformed into a limited company in 1998. With a long history of 136 years, SEP is one of the major electric energy companies in Shanghai. For the financial year ended December 31, 2016, SEP recorded an annual profit of RMB2.2 billion (US$329.8 million) and an annual power generation of 34.64 TWh. As of December 31, 2016, SEP has an overall installed capacity of 9804.9 MW, with contributions of 66.08%, 21.10%, 8.15%, and 4.67% from coal power, natural gas power, wind power, and solar power respectively.
The notice can be accessed here.
