The Shanghai Electric Power Company on Tuesday announced to launch a $9 billion investment plan to improve transmission, distribution and generation systems of K-Electric (KE) – the power utility it proposed to acquire for $1.7 billion, a statement said.
“Shanghai Electric Power along with the management of KE presented its business plan worth $9 billion for improving and adding value to the KE power infrastructure,” the statement added.
It said a meeting of the Cabinet Committee on Energy, chaired by Khawaja Muhammad Asif, Minister for Water and Power, discussed the K-Electric’s transaction. Minister for Petroleum and Natural Resources and chairmen Privatization Commission and Board of Investment attended the meeting.
The Dubai-based Abraaj Group, in October, signed an agreement to sell its 66.4 percent shareholding in KE to Shanghai Electric, a subsidiary of the State Power Investment Corporation of China. Upon completion, it will be one of the largest private sector transactions in Pakistan and represents one of the global power industry’s most well-recognised operational turnaround stories. The government owns about 24 percent in KE.
The agreement is subject to regulatory approval, and the transaction will close once customary closing conditions and requisite regulatory approvals are obtained. The deal, when materialises, will be the biggest private-sector acquisition in the country’s history.
Hopefully, they do not perform like the UAE company of which Mr 10% was also a share-holder.
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