China’s Shanghai Electric to Buy Majority Stake in Pakistan Utility

1 Sep 2016   China, Pakistan

China’s state-owned Shanghai Electric Power Co. 600021 3.08 % plans to acquire a controlling stake in Pakistani power utility K-Electric Ltd., in a deal that could be one of the biggest foreign investments in Pakistan’s history. In a notification filed with the Pakistan Stock Exchange Tuesday, Shanghai Electric 600835 -0.05 % said it intends to purchase the 66.4% stake in K-Electric currently held by The Abraaj Group, a Dubai-based investment firm. K-Electric shares, included in the Pakistan Stock Exchange’s benchmark 100-index, closed at 9.21 Pakistani rupees ($0.09) Tuesday, valuing Abraaj’s stake in the utility at 168.9 billion rupees, or $1.6 billion. K-Electric supplies power to Pakistan’s largest city and economic hub, Karachi, home to around 20 million people. The company has a customer base of 2.2 million, and 11,000 employees. The acquisition would be the […]

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