China's Shanghai Electric to buy $1.77 billion stake in Pakistani power company | Reuters

By Syed Raza Hassan | KARACHI, Pakistan KARACHI, Pakistan China's Shanghai Electric power company will buy a controlling stake in K-Electric, a power generation and distribution company in Pakistan's largest city, for $1.77 billion, K-Electric's parent company announced in a statement on Sunday.Dubai-based Abraaj Group said it had entered into a definitive agreement with China's state-backed Shanghai Electric to divest its 66.4 percent stake in K-Electric. K-Electric serves around 2.2 million customers in and around Karachi, Pakistan's largest city with a population of about 20 million

Reuters October 30, 2016 19:30:05 IST
China's Shanghai Electric to buy $1.77 billion stake in Pakistani power company
| Reuters

Chinas Shanghai Electric to buy 177 billion stake in Pakistani power company
 Reuters

By Syed Raza Hassan
| KARACHI, Pakistan

KARACHI, Pakistan China's Shanghai Electric power company will buy a controlling stake in K-Electric, a power generation and distribution company in Pakistan's largest city, for $1.77 billion, K-Electric's parent company announced in a statement on Sunday.Dubai-based Abraaj Group said it had entered into a definitive agreement with China's state-backed Shanghai Electric to divest its 66.4 percent stake in K-Electric. K-Electric serves around 2.2 million customers in and around Karachi, Pakistan's largest city with a population of about 20 million. It is involved in both generation at thermal power plants and power distribution.

"Today marks a milestone in that partnership as we enter into a definitive agreement to divest our stake in a high performance business and market leader to a strategic buyer who is fully committed to continuing this success story into the future," Arif Naqvi, Abraaj's chief executive, said in a statement.When completed, the deal will be biggest M&A agreement in Pakistan in a decade. Large parts of the Pakistani economy remain nationalised, or held by a few private businessmen, rather than diversified companies.

"The K-Electric transaction only marks the beginning of SEP’s cooperation with Abraaj and we look forward to further collaboration between the two parties in many other areas in the future," Wang Yundan, Shanghai Power's chief executive, said in a statement.Shanghai Electric announced its intention to bid for the stake in August.

Chinese companies' interest in Pakistan is growing after China announced energy and infrastructure projects worth $46 billion in the South Asian nation last year, with a view to opening a trade corridor linking western China with the Arabian Sea. (Writing by Asad Hashim, editing by Larry King)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Australians squirm as Joe Biden calls Australian PM 'that fellow down under'
World

Australians squirm as Joe Biden calls Australian PM 'that fellow down under'

Instead of being feted by name for his role in the US-Britain-Australia agreement, Prime Minister Scott Morrison was initially relegated to being "that fellow Down Under"

From costs to consequences, how Pentagon's reliance on contractors hurt US in 9/11 wars
World

From costs to consequences, how Pentagon's reliance on contractors hurt US in 9/11 wars

The Pentagon pumped out more contracts than it could oversee, lawmakers and government special investigators said

Taliban thanks world for emergency aid, urges US to show 'heart' towards Afghanistan
World

Taliban thanks world for emergency aid, urges US to show 'heart' towards Afghanistan

A donor conference in Geneva on Monday saw countries promise a total of $1.2 billion in aid for Afghanistan, which was taken over by the hardline Islamist group last month in a lightning offensive that took retreating US troops by surprise.