Acquisition of KE shares: Shanghai Electric extends timeline for PAO

K-Electric announced that it has received an intimation for extension in timeline for the public announcement of offer (PAO) for the acquisition of up to 66.40% ordinary shares of the power utility by Shanghai Electric Power Company Limited, in a notice sent to the Pakistan Stock Exchange (PSX) on Friday.

The announcement comes in reference to the earlier public announcement of intention (PAI) published on April 2, 2021 to acquire 18,335,542,678 ordinary shares of K-Electric Limited (the target company) representing 66.40% of the total issued and paid-up capital.

“We would like to intimate Securities and Exchange Commission of Pakistan and Pakistan Stock Exchange that the acquirer is extending the date for Public Announcement of Offer by ninety (90) days... Therefore, the time for making the Public Announcement of Offer in respect of the transaction is extended till December 28, 2021,” stated the letter sent to K-Electric by Arif Habib Limited (AHL), manager to the offer.

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

The deadline for making the public announcement of the offer by the Shanghai Electric Power Company Limited was September 29, 2021.

AHL in its letter stated that the parties under this transaction have taken all reasonable steps towards obtaining the regulatory approvals as required under the applicable laws of the People's Republic of China, as well as from domestic regulatory bodies as required under the laws of the Islamic Republic of Pakistan.

“Certain of these approvals are however yet to be issued and as such the parties under this Transaction cannot complete the Transaction before receipt thereof.”

The letter added that the parties under this transaction shall continue to apply all efforts in expediting the above approvals and processes. “We may mention, however, that a number of these conditions require the relevant regulatory authorities to seek internal approvals from various line ministries and departments, which processes are beyond the control of the acquirer,” it said.