Shang­hai Elec­tric to buy Pak­istani power com­pany


State-backed Shang­hai Elec­tric Power Co agreed to pay buy­out firm Abraaj Group $1.77 bil­lion for a con­trol­ling share­hold­ing in Pak­istani util­ity K-Elec­tric, gain­ing ac­cess to 2.5 mil­lion cus­tomers in the south Asian coun­try’s most pop­u­lous city.

Abraaj is sell­ing its 66.4 per­cent stake in K-Elec­tric through its KES Power unit, ac­cord­ing to a state­ment posted on its web­site, af­ter first in­vest­ing in the com­pany in 2009. K-Elec­tric was for­merly known as Karachi Elec­tric Sup­ply Co and has ex­clu­sive power distri­bu­tion rights for the city and ad­join­ing ar­eas.

The deal is among the big­gest ac­qui­si­tions in Pak­istan in a decade. Shang­hai Elec­tric Power emerged as the lead bid­der last month, peo­ple with knowl­edge of the mat­ter said, af­ter the stake had also drawn in­ter­est from Chi­nese clean-en­ergy group Golden Con­cordHold­ings Ltd, French util­ity Engie SA and at least one in­vest­ment fund, the peo­ple said.

Chi­nese com­pa­nies have an­nounced $10 bil­lion of over­seas util­ity ac­qui­si­tions this year, up from $24 mil­lion dur­ing the same pe­riod in 2015, ac­cord­ing to data compiled by Bloomberg. State Grid Corp of China agreed in July to buy a $1.8 bil­lion stake in Brazil­ian power dis­trib­u­tor CPFL En­er­gia SA, the data showed. Bei­jing En­ter­prises Hold­ings Ltd reached a deal in Fe­bru­ary to ac­quireGer­many’sEEWEn­ergy from Waste GmbH for 1.44 bil­lion eu­ros ($1.6 bil­lion).

Shang­hai Elec­tric said in Au­gust that it in­tended to ac­quire about 18.3 bil­lion shares, or a 66 per­cent stake, in K-Elec­tric. Cit­i­group Inc ad­vised Abraaj.

Shang­hai Elec­tric Power Co agreed to pay Abraaj Group for a con­trol­ling share­hold­ing in Pak­istani util­ity K-Elec­tric

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