Shanghai Electric Power Company has cancelled its public announcement of acquiring up to 66.40% voting shares of K-Electric Limited due to continues delays in receiving regulatory approval within the given time.
According to Arif Habib Limited, the time period for making the public announcement of offer will end on June 30, 2017 on the basis that certain regulatory and other approvals for the transaction remain outstanding.
It is important to mention here that Shanghai Electric Power Company made a public announcement of its plan to acquire majority shareholding in K Electric on 30 August 2016.
K Electric was planned to be sold with its majority shareholding to Shanghai Electric Power at $1.77 billion by the Abraaj Goup.
Abraaj Group, a Dubai-based private equity, in partnership with Al-Jomaih Group of Saudi Arabia and National Industries Group of Kuwait, holds a total shareholding of 66.4% in K-Electric. The three-firm consortium operates by KES Power, which is the parent company of K-Electric.
Sources also reveal that K-Electric’s failure to secure continuance of the pre-existing multi-year tariff was not welcomed by the Chinese and then a disagreement on almost $1.0 billion dues outstanding against the power utility made it difficult to deal between Abraaj and Shanghai.