The Shanghai Electric Power Ltd (SEPL) has sought the government’s support in accelerating the process of regulatory approvals to facilitate the completion of Sale-Purchase Agreement (SPA) of majority shares in K-Electric Ltd (KEL).
A delegation of Shanghai Electric Power (SEP), led by its chairman Wang Yundan called on Prime Minister Shahid Khaqan Abbasi.
The delegation apprised the prime minister about the current status of acquisition process of a majority stake in K-Electric and sought government’s support in accelerating the process of regulatory approval, said a press release.
The Prime minister assured the delegation that Government of Pakistan remained committed to supporting Shanghai Electric Power with a view to further liberalizing the power generation and distribution sector in the country.
To this extent, he also assured the visiting delegation of the government’s commitment to enabling the process to move forward subject to completion of all regulatory frameworks.
The deal is valued at $1.77 billion. The time period for making the PoI of purchase of stake in KEL expired on Monday, which forced K-Electric to announce the withdrawal of intention for the acquisition of up to 66.40% of its shares by Shanghai Electric Power.
Shanghai Electric is fully committed to consummate the transaction, pending receipt of regulatory and other approvals. They shall make a fresh public announcement of intention in accordance with the prescribed formalities immediately with effect from the expiry date
The major hurdle to completion of the deal is the Multi-Year Tariff (MYT) for KEL to be decided by National Electric Power Regulatory Authority.
K-Electric Ltd shares at the bourse saw a gain of Rs 0.28 or 4.27% and are trading at Rs 6.60 with a turnover of 11.63 million with this build up.