Shanghai Electric Power Company Limited cancelled the acquisition of 66.4% stake in K-Electric Limited.
On December 28, 2020, Shanghai Electric Power Company Limited communicated four conditions of resolution of past receivables/payables of KE, decisions from The National Electricity Regulatory Authority of Pakistan (NEPRA) on long pending issues of Midterm review of Multiyear Tariff and Write-Offs claims, certainty on exclusivity till the validity of existing license of KE (till 2030) and certainty on configuration of future commercial agreements and tariff for KE.
February 5, 2021, the top management of K-Electric Limited has withdrawn its main conditions of Principle of Reciprocity and arbitration through London Court from its draft terms of reference (ToRs) to resolve once for all the decade old disputes over receivables and payables between the K.E and the government entities. The unresolved dispute had also resulted in delays in the transaction. As announced on February 23, 2021, K-Electric Limited 's new multi-year electricity price mechanism (MYT) were reconsidered by NEPRA in October 2017 and there are still differences between the "reconsidered" MYT and the pre-delivery conditions stipulated in the "Share Sale and Purchase Agreement" which was signed in 2016. Shanghai Electric Power Company Limited will continue to promote the related work of this transaction, including financing matters, share transfer and payment of consideration for this transaction.
Shanghai Electric Power Company Limited cancelled the acquisition of 66.4% stake in K-Electric Limited (KASE:KEL) on December 29, 2021. Arif Habib Limited acted as the manager to Shanghai Electric Power Company Limited. Shanghai Electric will submit a fresh PAI to acquire K-Electric shares.