Shanghai Electric withdraws its offer to acquire major share in K-electric

Shanghai Electric has rescinded its proposal to acquire up to a 66.4 percent share in K-Electric, according to an announcement made to the Pakistan Stock Exchange on Monday.

The transaction involving K-Electric and Shanghai Electric has faced continuous delays over the past eight years, attributable to regulatory approvals and financial challenges, as reported by sources.

The deadline for presenting a definitive offer for the K-Electric shares was on April 20, after which Shanghai Electric withdrew its bid, the stock exchange was told.

K-Electric (KE) stands as the sole power utility generating, transmitting, and distributing electricity in Karachi, Pakistan’s largest metropolis, and the surrounding regions.

The Pakistani government holds a 24.4 percent stake in K-Electric.

Previously in June, Shanghai Electric had confirmed its intention to finalize the agreement, valued at roughly $1.77 billion in 2016, although it was anticipated that the value could have varied.