Chinese Multinational to Acquire 66.4 Percent Shares of Karachi Electric Corporation
In a deal worth USD 1.6 billion Shanghai Electric is set to do the biggest private-sector acquisition in Karachi’s history.
September 2, 2016
As a part of USD 46 billion project, China revealed that it will link its western Xinjiang province to Pakistan’s Gwadar port with a series of infrastructure, power and transport upgrades. Also, as per Pakistan Stock Exchange notification, Shanghai Electric Limited intends to acquire 66.4 percent shares of Karachi Electric Limited.
Set up in 1913 as a public sector company, the Karachi Electric was sold to Saudi Arabia’s Aljomaih Group in 2005, who in turn sold it to the UAE’s Abraaj Capital. Chinese have shown tremendous interest in Pakistan and this new deal will strengthen the cooperation of both countries under CPEC. Moreover, the analysts hope this acquisition may improve the efficiency and reduce blackouts by eliminating major power shortage in Pakistan.