KARACHI: K-Electric Ltd (KEL) has confirmed that Dubai-based private equity firm Abraaj Group is evaluating the possibility of divesting (directly or indirectly) its stake in the power utility.

In a filing to the Pakistan Stock Exchange (PSX) on Monday, KEL acknowledged that it received the following notification from its majority shareholder KES Power Limited: “We would like to notify that Abraaj is evaluating the possibility of divesting (directly or indirectly) its shareholding in K-Electric which will be subject to prescribed sale process, due diligence and execution of binding documentation (including receipt of applicable regulatory approvals and satisfaction of other conditions precedent). We will keep you informed of material developments.”

KEL released the material information statement under the requirements of the Securities Act of 2015 after it received intimation from the company secretary of KES Power Limited.

Last week, China’s state-backed Shanghai Electric Power announced its intention to bid for the acquisition of a stake in KEL, which has a total market value of $2.3 billion.

Although Abraaj Group was thought to be looking out for a buyer of its 66 per cent holding in K-Electric valued at around $1.5bn, the Karachi’s power utility continued to insist that it had not been notified about any transaction or acquisition.

Shanghai Electric had affirmed in a statement on the Shanghai Stock Exchange last week that it was not the only company participating in the bidding process. Reports earlier said that Chinese clean-energy group Golden Concord Holdings was also in the run for control of KEL.

Published in Dawn, August 30th, 2016

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Police Lines bombing
Updated 31 Jan, 2023

Police Lines bombing

Where the menace of terrorism is concerned, the government and opposition need to close ranks and put up a united front.
Oil price hike
31 Jan, 2023

Oil price hike

THE record single-day increase in petrol prices, preceded by massive currency depreciation, signifies the ...
Babar Azam’s award
31 Jan, 2023

Babar Azam’s award

BABAR Azam might not have lifted many trophies as Pakistan’s all-format captain in the last year but the star...
Blatant Islamophobia
Updated 30 Jan, 2023

Blatant Islamophobia

Muslim extremists and terrorist outfits are emboldened by hateful acts.
Modern slavery
30 Jan, 2023

Modern slavery

MODERN slavery is a wide-ranging term that can encompass a multitude of scenarios. Common to all of them, however, ...
Remarkable Sania
30 Jan, 2023

Remarkable Sania

BRINGING to a close a career in which she smashed stereotypes, Sania Mirza delivered almost the perfect ending in ...