China's state-owned Shanghai Electric Power Company Limited intends to acquire up to 66.40 percent voting shares of K-Electric, sixth time ofsince 2016
China's Shanghai Electric Intends To Acquire K Electric
In a renewed development K-Electric on 30th June received fresh Public Announcement of Intention (PAI) from Shanghai Electric Power Company Limited (SEP) to acquire up to 66.40 percent voting shares of K-Electric Limited, , subject to receipt of regulatory and other approvals.
According to details, China based Shanghai Electric requested Securities and Exchange Commission of Pakistan and Pakistan Stock Exchange to make this information immediately available to the shareholders of K-Electric.
Previously, on 30th September 2019, SEP renewed the intention for the fifth time in since 2016 to acquire a majority stake in K-Electric from the financial crisis-hit Abraaj Group.
Concurrently, Arif Habib Ltd - manager to the offer of the acquirer - stated that they were pleased to submit a fresh PAI by SEP to directly or indirectly acquire up to 18.336 billion shares of KE, representing 66.40pc of the total issued share capital of the company, subject to receipt of requisite regulatory and other approvals.
The public offer would be for 4.640bn shares or 16.80pc of the equity. The new announcements are routinely made by the parties on the expiry of the prescribed time period for making public announcement of offer (as extended by the Securities and Exchange Commission of Pakistan) which in this case was up to June 27.
K-Electric have confirmed the receipt of such offer where Shanghai Electric intends for acquiring up to 66.40 percent of the voting shares of K-Electric Limited.
SEP was established in 1882 and then transformed into a limited company in 1998. With a long history of 138 years, SEP is one of the major electric energy companies in Shanghai and is also a publicly-traded company listed on Shanghai Stock Exchange under ticker 600021.
Shanghai Electric is principally engaged in the development and construction of electricity, as well as its operation and management business. For the financial year ended December 31, 2019, SEP recorded an annual net profit of RMB2.0 billion (US$289.7 million) and an annual power generation of 48.66TWh.
As of December 31, 2019, SEP has an overall installed capacity of 15.8GW, with contributions of 53.92%, 15.16%, 13.58%, and 17.34% from coal power, natural gas power, wind power, and solar power respectively.
© Pakistan Press International, source Asianet-Pakistan