KARACHI: Shanghai Electric has dropped its USD 1.77 billion plan to buy a 66.4 percent stake in K-Electric, citing unmet conditions, regulatory delays and changes in the utility’s business environment, the company said in a notice to the Shanghai Stock Exchange.
The company had intended to purchase 18.3 billion shares of K-Electric from KES Power Ltd, with an additional performance-based bonus of up to USD 27 million tied to the utility’s operating results.
Shanghai Electric said the deal could not proceed because preconditions were not met, including certain government and regulatory approvals in Pakistan. It also pointed to the 2018 multi-year tariff introduced by Pakistan’s National Electric Power Regulatory Authority (Nepra), which reduced profitability and lowered K-Electric’s valuation. A revised assessment submitted by Shanghai Electric was not accepted by the seller.
After repeated delays and extensions, the board of Shanghai Electric voted on September 9, 2025, to terminate the transaction.
The company stated that the withdrawal will not have a material impact on its financial or operational performance. “The company has decided to terminate this major asset acquisition project in order to protect the overall interests of the company and its shareholders,” the notice said.
Copyright Business Recorder, 2025
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