The deadline for submitting a solid offer for K-Electric’s stake expired on April 20, and Shanghai Electric has chosen to withdraw its bid, as stated by Arif Habib Limited, the offer manager, in the notice to the exchange.
K-Electric (KE) serves as the sole electricity generator, transmitter, and distributor for Karachi, Pakistan’s largest city, and its surrounding areas. It stands as the only listed electricity provider in the country following its privatization in 2005.
Shanghai Electric has been engaged in discussions to acquire a stake in KE for over five years. However, the deal has faced persistent delays attributed to regulatory clearances and financial constraints stemming from the mounting circular debt within Pakistan’s power sector. Notably, the government of Pakistan holds a 24.4% stake in K-Electric.
In June of the previous year, Shanghai Electric reaffirmed its dedication to the deal, originally valued at approximately $1.77 billion in 2016, although the dynamics of the agreement were subject to change.
