Shanghai Electric Power Company Limited (SEP) has submitted fresh bid/Public Announcement of Intention (PAI) to acquire up to 66.40% voting shares of K-Electric Limited, conditional upon receipt of regulatory and other approvals.
The mentioned information was disseminated by KE via notification to Exchange.
Shanghai Electric had previously withdrawn its bid for the acquisition of up to 66.4% of the voting shares of K-Electric Limited on March 29, 2021, as the time period for making the public announcement of the offer (as extended by the Securities & Exchange Commission of Pakistan) was lapsed on March 27, 2021 as regulatory and other approvals for the transaction were outstanding at the time of expiry of the Bid.
As per the channel check, governemnt is reluctant to allow sale of stake in K-Electric from Abraaj Capital to Shanghai Electric. Many believe that K-Electric failed to acheived promised milestones in its agreement witht the government. The foremost objective for K-Electric was to add new Elecrticity Production units which it failed to do so. Furthermore, the Abraaj Capital saga and resultant implication of Arif Naqvi in the case led to stalling of negotiations.