Shanghai Electric gets approval for KE

Beijing—Shanghai Electric Power Co Ltd said on Monday that it had received approval from the Competition Commission of Pakistan (CCP) to acquire K-Electric Limited.
The Abraaj Group announced in October that one of its companies, KES Power, had reached an agreement to divest its stake in K-Electric, the country’s largest and only vertically integrated power utility, to Shanghai Electric.
Abraaj owns 66.4 per cent of K-Electric’s total shares, along with management control.
The deal, when closed, will be worth $1.77 billion. Shanghai Electric is a state-owned enterprise controlled by China’s State Power Investment Corporation, a Fortune 500 company.
Listed on the Shanghai Stock Exchange, it is mainly responsible for Shanghai’s power supply, with a generation of 35.23TWh (terawatt hours) last year.
The deal ended a stormy, but ultimately fruitful, engagement that Abraaj began in 2009 when it acquired the controlling stake with management control in the midst of a severe crisis in the utility.— Reuters

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