Yesterday, the Shanghai Electric Power Company (SEPC) outlined a new investment plan worth $9 billion for K-Electric (KE) in a bid to upgrade generation, distribution and transmission system of the company. It is worth mentioning that the SEPC recently acquired a majority stake in KE for $1.7 billion from Dubai-based Abraaj Group, and is now working to improve the infrastructure of the power utility.
“Shanghai Electric, one of the largest companies in power sector in China, also shared its profile and international expertise and similar experience (at the meeting),” which company said in a statement. Under the terms of the deal finalized in October, SEPC acquired 66.4% of KE with the government of Pakistan owning 24%
Several reports suggest that the agreement is subject to government approval, and the transaction is expected to complete once all regulatory approvals and customer closing conditions are finalized. At completion, this will be the largest private-sector acquisition in the history of the country.
“Government of Pakistan also highlighted the need for K-Electric to synchronize their plans of investment to bring up the infrastructure and the generation facilities, with the overall national plan for minimizing and eliminating load-shedding in the country by 2018,” the company said in a statement. “Government of Pakistan ensures its support to the efforts for improvement in the quality and quantity of service to the consumers of KE.”
The news also spread positive sentiments in the stock market with KE experiencing a hike in its stock price by 18 paisa to close at PKR 9.41 with a trade volume of 22.8 million shares.