Shanghai Electric Power Company has withdrawn its public announcement of intention to acquire up to 66.40% voting shares of K-Electric Limited due to delays in receiving regulatory approval within the stipulated time.
According to Arif Habib Limited, the time period for making the public announcement of offer (as extended by the Securities and Exchange Commission of Pakistan) will end on June 30, 2017 on the basis that certain regulatory and other approvals for the transaction remain outstanding.
It is pertinent to mention here that Shanghai Electric Power Company made a public announcement of its intention to acquire majority shareholding in K Electric on 30 August 2016.
K Electric was planned to be sold with its majority shareholding to Shanghai Electric Power at $1.77 billion by the Abraaj Goup.
However, Shanghai Power Company continues to be fully committed to the transaction pending receipt of regulatory and other approvals, and it will make a fresh public announcement of intention in accordance with the prescribed formalities immediately, the stock filing by K Electric said.
It should be noted that Shanghai Power Company Limited had earlier announced its plans to invest $9 billion in K-Electric.