Acquisition of shares by Shanghai Electric: KE receives PAI ‘withdrawal’

KARACHI: K-Electric has received “withdrawal” of Public Announcement of Intention (PAI) for acquisition of up to 66.40 percent voting shares of K-Electric Limited by Shanghai Electric Power Company Limited.

With reference to the Public Announcement of Intention (PAI) made by Shanghai Electric Power Company Limited (acquirer) dated June 30, 2020 to directly or indirectly acquire up to 18,335,542,678 ordinary shares of K-Electric Limited (the target company) representing 66.40 percent of the total issued share capital of the target company, subject to receipt of regulatory and other approvals (transaction), Arif Habib Limited, the Manager to the Offer, has sent a copy of withdrawal of this public announcement.

“We, Arif Habib Limited, in our capacity as Manager to the Offer, would like to intimate that the time period for making the public announcement of offer (as extended by the Securities and Exchange Commission of Pakistan) will lapse as of March 27, 2021 (expiry date) on the basis that certain regulatory and other approvals for the transaction remain outstanding,” a letter sent to K-Electric said.

“In the premises, and pursuant to Regulation 21(1) of the Listed Companies (Substantial Acquisition of Voting Share and Takeover) Regulations, 2017 read with the Securities Act 2015, we hereby give notice that as the Expiry Date, the PoI [PAI] stands withdrawn,” the letter said.

“As the Acquirer continues to be fully committed to consummate the Transaction pending receipt of regulatory and other approvals, the acquirer will notify the fresh Public Announcement of Intention via Pakistan Stock Exchange Limited on March 31, 2021 and shall also publish the same in newspapers within two working days of such notification in accordance with the prescribed formalities,” it added.

“The process of withdrawal and re-issuance of the PoI is being undertaken to ensure compliance with the law, the letter said. Accordingly the transaction will be consummated immediately upon receipt of remaining regulatory and other approvals,” it said.

Copyright Business Recorder, 2021