Shanghai Electric Power Company Limited (SEP) has extended its deadline to acquire 18.3 million ordinary shares i.e. 66.40% of the total issued and paid-up capital of K-Electric Limited (KEL) by 90 days.
The development was shared by brokerage house Arif Habib Limited (AHL), manager to the offer, in a notice to the Pakistan Stock Exchange (PSX) on Monday.
It added that the deadline for making the public announcement of the offer was January 21, 2024.
“On behalf of the acquirer, we would like to intimate Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX) 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 April 20, 2024,” it added.
AHL shared 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 Pakistan.
“Some of these approvals are however, yet to be issued and as such the parties under this transaction cannot complete the transaction before receipt thereof.
“Please be assured that the parties under this Transaction shall continue to apply all efforts in expediting the above approvals and processes,” read the notice.
AHL shared that a number of these conditions require the relevant regulatory authorities to seek internal approvals from various line ministries and departments whose processes are beyond the control of the acquirer.
Last year in October, SEP renewed its commitment to acquire 66.40% shares in KE for $1.77 billion.
Shan A Ashary, the Saudi Group’s investment advisor and Ex-chairman KE, back then had said that a fresh offer would be given, and the deal with SEP should to go up to $2 billion.