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.