Recently Shanghai Electric Power Company Limited (SEP), the listed subsidiary of State Power Investment Corporation (SPIC) and the Abraaj Group (Abraaj), signed the agreement on the purchase of 66.4% stake of the Pakistan-based K-Electric Limited (KE) in Beijing.
KE is the key power supplier to Karachi and the surrounding regions and also Pakistan’s only vertically-integrated power company engaged in generation, transmission and distribution. Operating five power plants with a total installed capacity of 2,243 MW; KE has 69 transmission power stations and 21,817 sub-stations, with 2.5 million users and a coverage area of 6,500 km2.
The transaction has gone through the corporate decision-making procedures and will complete after regulatory approvals are obtained in both countries.
SEP’s acquisition of KE is in line with China’s “Belt and Road” Initiative. It is a significant move by SEP to implement SPIC’s strategy of international development.
