Suit­ors vie for $1.5 bil­lion Pak­istani K-Elec­tric stake


Chi­nese clean-en­ergy group Golden Con­cord Hold­ings Ltd is com­pet­ing with Shang­hai Elec­tric Power Co for con­trol of K-Elec­tric Ltd, the $2.3 bil­lionPak­istani util­ity, peo­ple with knowl­edge of the mat­ter said.

The two Chi­nese com­pa­nies are among bid­ders asked to sub­mit bind­ing of­fers by the end of this month for Abraaj Group’s 66 per­cent hold­ing in K-Elec­tric, ac­cord­ing to the peo­ple. French util­ity Engie SA and at least one in­vest­ment fund are also in the fi­nal round, one of the peo­ple said, ask­ing not to be iden­ti­fied be­cause the in­for­ma­tion is pri­vate. The stake was val­ued at about $1.5 bil­lion based on the com­pany’s stock price Thurs­day in Karachi, ac­cord­ing to data com­piled by Bloomberg.

Any trans­ac­tion would add to the $129.1 bil­lion of util­ity deals an­nounced glob­ally this year, up from $60 bil­lion dur­ing the same pe­riod in 2015, the data show. K-Elec­tric, formerly known as Karachi Elec­tric Sup­ply Co, serves more than 2.2 mil­lion cus­tomers in and around the Pak­istani city and em­ploys about 11,000 peo­ple, ac­cord­ing to its web­site.

A K-Elec­tric spokes­woman said the com­pany hasn’t been no­ti­fied of any trans­ac­tion or ac­qui­si­tion. Rep­re­sen­ta­tives for Abraaj and Engie de­clined to com­ment, while Golden Con­cord and Shang­hai Elec­tric Power didn’t an­swer phone calls seek­ing com­ment out­side, reg­u­lar busi­ness hours in China.

Pak­istan’s gov­ern­ment owns an­other 24 per­cent stake in K-Elec­tric, data com­piled by Bloomberg show. Shares of K-Elec­tric rose as much as 3.1 per­cent in Karachi trad­ing on Fri­day, the big­gest gain in about a week. The stock has risen 19 per­cent this year, trail­ing the 21 per­cent in­crease in the bench­mark Karachi Stock Ex­change KSE100 Index.

Abraaj, an emerg­ing-mar­kets in­vest­ment firm with about $9.5 bil­lion of as­sets un­der management, bought the con­trol­ling stake in K-Elec­tric in 2009, ac­cord­ing to its web­site.

Golden Con­cord is the par­ent ofHongKong-trad­edGCLPoly En­ergy Hold­ings Ltd, the world’s big­gest polysil­i­con and so­lar wafer maker, and clean­power pro­ducer GCL New En­ergy Hold­ings Ltd. Shang­hai Elec­tricPower, which has a mar­ket value of $3.6 bil­lion, is a listed unit of China’s State Power In­vest­ment Corp.

the num­ber of cus­tomers K-Elec­tric Ltd serves in and around the Pak­istani city

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