China’s Shanghai Electric Power Company has withdrawn its public announcement of intention (PAI) for acquiring up to 66.40 percent ordinary share capital of K-Electric Limited (directly or indirectly), K-Electric (PSX: KEL) informed the main bourse on Monday.
The Chinese power giant has been trying to buy KE shares for over 5 years. In June 2023, the acquirer declared that it was ready to proceed with the purchase but subsequent delays due to regulatory and liquidity issues made it impossible for the transaction to materialize.
“Arif Habib Limited, Manager to the Offer, has intimated that the time period for making the public announcement of offer (as extended by the Acquirer) lapsed on April 20, 2024(“Expiry Date”) as certain regulatory and other approvals for the Transaction remain outstanding,” the stock filing stated.
The filing added that the acquirer has issued a notice that as of the expiration date, the PAI stands withdrawn. This process of withdrawal is being undertaken to ensure compliance with the law.
The deal has faced multiple delays because of regulatory approvals and financial limitations stemming from the increasing circular debt in Pakistan’s power sector.
The Pakistani government holds a 24.4% stake in KE.
KE is principally engaged in the generation, transmission and distribution of electric energy to industrial and other consumers under the Electricity Act,1910, and NEPRA Act 1997, as amended to its licensed areas. KES Power Limited is its holding company.
