KARACHI: The Abraaj Group has announced that an Abraaj-controlled company, KES Power, has entered into a definitive agreement to divest its 66.4% shareholding in K-Electric to the Shanghai Electric Power Company Limited (SEP) for a consideration of $1.77 billion.
SEP is a state-owned enterprise controlled by State Power Investment Corporation, a Fortune 500 company. Listed on the Shanghai Stock Exchange, it is mainly responsible for the power supply of Shanghai.
“Upon completion, this will be one of the largest private sector transactions in Pakistan,” stated the press release issued by The Abraaj Group.
K-Electric, formerly known as Karachi Electric Supply Company, is a publicly listed fully integrated power utility involved in generation, transmission and distribution. It was privatised in 2005 and Abraaj took a majority stake in 2009 through its Funds. K-Electric has exclusive distribution rights for Karachi and its adjoining areas, serving 2.5 million consumers.
The transaction will close once customary closing conditions and requisite regulatory approvals are obtained.
K-Electric is listed on the Pakistan Stock Exchange. Its share closed at Rs9.10 on Friday, up Rs0.11 during intra-day trading.