K-Electric (KE) wants Shanghai Electric Power (SEP) to increase its bid to $2 billion to buy a majority stake in the power utility.
The SEP initially offered to buy 66.40 percent of KE for $1.77 billion, but the transaction was delayed for years owing to regulatory issues. Shan Ashary, a director at KE, told journalists in Karachi that the offer should now be increased to $2 billion since the company has made significant strides over the last few years.
Ashary opined that SEP had the capability and knowledge to enhance the electricity sector of Karachi which suffers from regular power outages and supply shortages. He expressed hope that the Special Investment Facilitation Council (SIFC) would assist in speeding up the SEP deal.
He stated that he had visited with SIFC officials to address related concerns but so far, no concrete steps have been taken.
On other initiatives for expansion and growth, Ashary indicated KE was willing to provide Asia Pak Investments a seat on its board and that the company had presented a plan for intense investment in Karachi to the National Electric Power Regulatory Authority (NEPRA).
He further revealed that the Infrastructure Growth and Capital Fund (IGCF), a fund that owns shares in KES Power, has more than 80 existing investors and that Mashreq Bank’s 30 percent stake in IGCF remains intact.
The KE director welcomed any potential Pakistani investor who wanted to lawfully join Aljomaih and described Pakistan as the ideal destination for Saudi and other Gulf countries to invest because the rate of return in Pakistan was higher than in Europe.
