SHANGHAI: China’s state-backed Shanghai Electric Power said it is bidding to acquire a stake in K-Electric Ltd, which has a total market value of $2.3 billion.

“Our company has embarked on preliminary work on the acquisition of a stake in K-Electric. We have not entered into any exclusive negotiations yet and the size of the stake has also not been firmed up,” Shanghai Electric said in a statement on the Shanghai stock exchange on Monday.

It said it is not the only company participating in the bidding process.

Dubai-based private equity firm Abraaj Group has flagged its intention to sell its stake of about 66 per cent in K-Electric, which supplies power to over 2.2 million customers in and around Karachi.

As of Monday, Abraaj’s stake was valued at around $1.5bn. The government owns about 24pc in K-Electric.

Published in Dawn, August 23rd, 2016