In a key development for Pakistan’s energy sector, Shanghai Electric Power (SEP) has terminated its purchase of 18,335,542,678 shares in K-Electric (KE), a Pakistani utility company, for $1.77 billion.
SEP disclosed the development in its notice to the Shanghai Stock Exchange on Wednesday.
As per the notice, the company intended to acquire 18,335,542,678 shares of KE held by KES POWER LTD in cash, representing 66.40% of KE’s total issued share capital, for a consideration of $1.77 billion.
Under the purchase, the company would also provide incentives to the counterparty or its designated party, up to a total of $27 million, depending on the target company’s operating performance.
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Giving reasons behind the termination, the Shanghai Electric said that since planning this major asset purchase, the company has strictly adhered to relevant laws, regulations, and regulatory documents and actively advanced all aspects of the transaction.
“Given that the counterparty has consistently failed to meet the closing preconditions and that changes in Pakistan’s business environment have made this transaction no longer consistent with the company’s international development strategy, after careful research and analysis, and to safeguard the interests of the company and all shareholders, the company has decided to terminate this major asset purchase,” read the notice.
Shanghai Electric shared that on September 9, 2025, it held a meeting of its Board of Directors, which reviewed and approved the “Resolution on Terminating and Writing Off the Equity Acquisition of KE Pakistan,” agreeing to the company’s termination of the major asset purchase.
“From its initiation to its termination, this transaction did not have a significant adverse impact on the listed company’s production and operations, nor did it result in any significant adverse changes to the listed company’s operating environment,” it added.
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