KARACHI -Shanghai Electric Power Company has withdrawn an offer it had earlier made to buy 66.4% stakes of K-Electric Limited, Pakistantribe learnt from local media.
China’s Electric giant stepped back from the offer after the power utility’s key shareholder failed to secure a national security clearance certificate to complete the transaction, an official said on Tuesday.
“We have received a copy of the withdrawal of public announcement of intention for acquisition – directly or indirectly – of up to 66.4% of the voting shares of K-Electric Limited by Shanghai Electric Power Company,” Mohammad Rizwan, director finance at K-Electric said in a notice sent to the bourse.
On August 30, 2016, Shanghai Electric made a public announcement of intention to acquire 18.335 million shares in K-Electric Limited, representing 66.4% of the total issued share capital.
Abraaj Group, a Dubai-based private equity, in partnership with alJomaih Group of Saudi Arabia and National Industries Group of Kuwait, holds a total shareholding of 66.4% in K-Electric. The three-firm consortium operates in the name of KES Power, which is the parent company of K-Electric.
The three-firm consortium operates in the name of KES Power, which is the parent company of K-Electric.
However, the Privatization Commission could not be convinced to issue the national security clearance certificate before all the outstanding dues are cleared.
Rajani said Shanghai Electric continued to be fully committed to consummate the transaction and, “they will make a fresh public announcement of intention to acquire the stake in K-Electric immediately with effect from the expiry date of the earlier intention i.e. June 30, 2017.”