We have been saying this for years now: the energy business is very profitable in Pakistan! Let’s hope that European companies will understand that too after this:
Pakistan’s K-Electric Ltd. rose to the highest in more than a year and a half after Shanghai Electric Power Co. said it plans to buy a controlling stake in the power utility valued at $1.6 billion.
China’s state-backed Shanghai Electric Power intends to acquire as much as 18.3 billion shares, representing 66 percent of K-Electric, according to a notice sent by offer manager Arif Habib Ltd. to the Pakistan Stock Exchange. K-Electric shares rose 1.3 percent to 9.21 rupees after the announcement, the highest since January 2015. Arif Habib rose by the 5 percent limit, the most in a month.
The Chinese company said last week it’s doing preliminary preparation work on acquiring a stake in K-Electric, which serves about 2.2 million customers and employs 11,000 people in Karachi, Pakistan’s coastal commercial capital. Shanghai is vying with Chinese clean-energy group Golden Concord Holdings Ltd., French utility Engie SA and at least one investment fund, people with knowledge of the matter said earlier this month.
Acquiring control of K-Electric would be Shanghai Electric Power’s biggest overseas purchase, surpassing its 2014 deal to buy a $399 million stake in Maltese utility Enemalta Plc, according to data compiled by Bloomberg.