KARACHI: China’s state-owned Shanghai Electric Power (SEP) has officially scrapped its $1.77 billion deal with K-Electric after years of delays caused by regulatory and legal hurdles, ARY News reported.
The agreement, which involved SEP buying a 66.40 percent majority stake in K-Electric from KES Power Limited, had remained stuck for years as various approvals never came through.
In a formal notice, SEP confirmed the termination of the deal and informed the Shanghai Stock Exchange of its withdrawal.
Back in October 2023, SEP had renewed its $1.77 billion bid to acquire K-Electric, showing fresh interest in purchasing shares of the city’s only power supplier.
Meanwhile, investment advisor to the Saudi group, Shan Abbas Ashari, told reporters in Karachi that Al-Jomaih Power Limited of Saudi Arabia, the main shareholder, was open to selling at around $2 billion.
He noted that SEP’s earlier $1.77 billion offer would be revised, and a fresh agreement could be signed.
Ashari pointed out that Karachi’s electricity demand should ideally be around 5,000 MW and would rise further if industries were fully shifted to K-Electric’s grid.
He added that Pakistan’s growing population makes it an attractive market for Saudi and Gulf investors, though both Saudi and Kuwaiti stakeholders have faced challenges in the K-Electric transaction.