Shanghai Electric to buy $1.77 billion stake in Pakistani power company

• 7 years ago (2016-10-31)
• David Flin

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China’s Shanghai Electric power company has announced that it will buy a controlling stake in K-Electric, a power generation and distribution company in Karachi for $1.77 billion. K-Electric’s parent company, the Dubai-based Abraaj Group, has said that it has entered into a definitive agreement with Shanghai Electric to divest its 66.4 per cent stake in K-Electric.

K-Electric serves around 2.2 million customers in and around Karachi. It is involved in both generation and power distribution.

When completed, the deal will be the biggest M&A; agreement in Pakistan for a decade.

Wang Yundan, Chief Executive of Shanghai Power, said: “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.”