Chinese company, Shanghai Electric Power Company Limited (SEPCL) has again reiterated its bid to acquire 66.40% of the ordinary share capital of K-Electric (KE). The Company Secretary of KE confirmed that the K-Electric has received the ‘intention of interest’ to acquire 66.40 per cent of ordinary share from Shanghai Electric Power (SEP) a third time.
According to an earlier notification at Pakistan Stock Exchange (PSX), Shanghai Electric pulled back its ‘Intention of Interest’ to acquire the KE as its time period had elapsed.
“K-Electric Limited (KE) has received a fresh Public Announcement of Intention (PAI) from Shanghai Electric Power Company Limited (SEP) to acquire up to 66.40% voting shares of K-Electric Limited, subject to receipt of regulatory and other approvals,” the company secretary said in a notice to PSX.
There is a possibility that Shanghai could be successful this time with Tabish Gohar’s appointment as Special Assistant to the Prime Minister on Energy and Power. Gohar had also been employed in K-Electric and is now working to finalise the deal with Shanghai Electric and K-Electric.
Gohar, in an interview, had said that the government wants Shanghai Electric to take reins of the K-Electric, however, it should be as per the conditions set by the government. The government wants Shanghai electric to make investments in K-electric and take control of the power utility, he added.
He, however, stated that it was not possible for them to waive off the Rs 150 billion loan of K-Electric and hike electricity prices.
“K-Electric has made these suggestions to make a lucrative offer to Shanghai Electric,” he said, adding that the power utility further suggested surcharge in power tariffs over a delay in the provision of subsidies.