Foreign Companies Interested in Acquiring K-Electric

KES Power Limited, a holding company for Karachi Electric Supply Company (KESCO) reports that Abraaj group is considering divesting its stake for the company.

A letter from KES Power to KESCO states:

Abraaj is evaluating the possibility of divesting (directly or indirectly) its shareholding in K-Electric, which will be subject to a prescribed sale process, due diligence and execution of binding documentation

KESCO affirmed this in a filing to the Pakistan Stock Exchange on Monday that they have received such a letter from KES Power.

Chinese Owners Interested in Acquisition

According to a report, two Chinese companies are interested in bidding for KESCO as well. One is the state owned Shanghai Electric Power, while the other is a Chinese clean-energy group known as Golden Concord Holdings.

In a statement issued by Shanghai Electric at the Shanghai Stock exchange, the company said:

Our company has embarked on preliminary work on the acquisition of a stake in K-Electric. We have not entered into any exclusive negotiations yet and the size of the stake has also not been firmed up.

The Abraaj Group

Abraaj group, a private equity firm based in Dubai, owns 66 percent shares of KESCO. The shares, based on evaluations made on Monday, stand at around $1.5 billion. Pakistani government owns 24 percent of the shares. The remaining shares are in free-float form, in circulation at Pakistan Stock Exchange.

The Chinese companies have been asked to submit their offers for the 66% share bid by the end of the month.  French global energy group Engie and one other investment group is also participating in the final round for the bidding according to reports.

Following China Pakistan Economic Corridor projects, it seems likely that the shares for KESCO will be acquired by the state owned Shanghai Electric.

A techie, Overwatch and Street Fighter enthusiast, and Editor at ProPakistani.

  • they just removed tonnes of copper wires from my neighbourhood and installed the cheap silver wires which have failed worldwide. They will sell these copper wires make billions on top the billions they have already looted from the poor people of Karachi. The morons who were changing the meters were offering households in my neighbourhood to slow the new meter down for a small fee In other words Mithai Khila do Sahaab

    • Copper wires are no where used in open. They have tendency to corrode easily. Those are all Aluminum (alloy) cables you see hanging with poles. No silver there because silver is extremely expensive. K-Electric removed heavy duty aluminum cables, sold them and installed low quality ones that are inadequate to bear the load.

      At markets, people who sell cables calling them ‘made of silver’ are fooling around with us. They are all made of aluminum.

      Don’t believe me? Just check the prices of silver. (1 kilogram of silver costs around 63000 rupees)

  • Silver DOES conduct better than any other metal. Copper, aluminum, and gold are all good conductors, but silver is #1. The electrons at the outside of a silver atom are loose and ready to fall off when an electrical voltage starts pushing on them.
    Relative electrical conductivity…
    Silver, 106.4
    Copper, 100.0
    Gold, 73.4
    Aluminum, 65.0
    Magnesium, 39.9
    Rhodium, 36.4
    Iridium, 32.5
    Tungsten, 31.4
    Zinc, 29.1
    Cobalt, 27.4

  • PMLn fulfilling their manifesto pledge of selling profitable gold egg giving ducks to private foreign terms, this is causing high electricity bill due to profit becoming the key criteria and not looking at these utilities as essential public utilities where money shouldn’t be the key criteria. Shame! – Democracy and Capitalism two curses of the modern world!

  • I think “K-ELECTRIC” Ko Nahi Bal K Puray Pakistan K Electric ko China K Hawaly he Karna Hoga then LoadSheading End hogi warna 2050 Main Bhi End nahi hogi

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