Shanghai Electric’s bid to buy 66 percent stake in KEL delayed due to regulatory approvals

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generation and electronic equipment manufacturing company, Shanghai Electric public announcement of intention stands withdrawn to buy the proposed 66 percent stake in K-Electric.

The company had previously shown interest in the Karachi Power Generation company K-Electric on June 29^th 2017. The company had showed an intention 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 26^th 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Act 2015, we hereby give notice that as of the Expiry Date, the Public Announcement of Intention (PoI) stands withdrawn.”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 revealed 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.”

The said notice can be accessed here.