SINGAPORE: China’s state-backed Shanghai Electric Power said it is bidding to acquire a stake in Pakistani utility K-Electric, 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% in K-Electric, which supplies power to over 2.2 million customers in and around Karachi. However, K-Electric had said earlier this month that rumours about Engro Corporation and Shanghai Corporation acquiring a stake in the company is “incorrect and speculative.”
Published in The Express Tribune, August 23rd, 2016.
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