Sale of KES shares: SECP hasn’t received any information from K-Electric

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has not received any disclosure from K-Electric Limited (the target company) about the sale of the KES shares by a substantial shareholder to Sheriyar Chisti.

Responding to a query, sources told Business Recorder here on Thursday that the K-Electric neither has disclosed any such price-sensitive material information on the Pakistan Stock Exchange (PSX) till now, nor any such disclosure has been received by the SECP.

The SECP officials were responding to the query that a substantial shareholder of K-Electric Limited holding 66.40 per cent voting shares is engaged in the deal for selling its stake to Chishti.

Shanghai Electric Power Company (“the acquirer”) has already made the public announcement of intention to acquire 18.335 million (66.40 per cent) shares of the target company.

Meanwhile, the K-Electric on Thursday wrote to the PSX that the K-Electric has no information of any proposed change in the controlling stake of K-Electric. The K-Electric is in the process of gathering the relevant facts and will make appropriate disclosure to the Pakistan Stock Exchange in this regard as soon as it has sufficient facts to clarify the matter, it added.

The SECP officials added that the commission has not sought any explanation from K-Electric Limited on the rumoured sale of shares by KES Power Limited to Sheriyar Chisti.

The SECP officials also explained the exiting procedure to be followed in such kinds of deals between the two parties. In terms of Section 114 of the Securities Act, 2015, any person intending to acquire control or voting shares of the target company which may attract provisions of Section 111 of the Securities Act, 2015 shall make a Public Announcement of Intention (“PAI”) through the manager to the offer who is duly licensed as consultant to the issue by the commission. Such PAI is required to be notified to the target company, the Securities Exchange and the Commission.

Moreover, under regulation 5(1) (a) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017 (“the Regulations”), the target company shall make immediate disclosures under Schedule V of the Regulations to the Securities Exchange and the Commission when a firm intention is notified to the target company, the SECP officials added.

Copyright Business Recorder, 2022