KARACHI: Shanghai Electric Power (SEP) has once again started considering the investment of about 2 billion dollars in K-Electric. Shanghai Electric Power recently renewed its commitment to acquire 66.40 shares in K-E for $1.77 billion, says a Press release.
In this regard, Saudi Group’s investment advisor and Member, Board of Directors, K-Electric Shan A. Ashary has said that a new offer will be given now and the contract should go up to 2 billion dollars.
Shan A. Ashary said in a media interview that the deal with Shanghai Electric will happen again, Shanghai Electric has once again submitted an expression of interest to buy K-Electric, Shanghai Electric had offered 1 billion 77 million dollars, but after so many years, it should be offered again. And we would like this offer to go up to 2 billion dollars.
He said that the Chinese state-owned company SEP has been agreeing to acquire 66.40 percent shares in the Karachi-based power company for the past several years, but now the situation has changed. We have made clear improvements in electricity, we want to come with a new offer and we want this deal to be done at a cost of about 2 billion dollars.
He said that if the Shanghai Electric deal is done, the citizens of Karachi will benefit a lot from this, at that time Karachi’s demand should have been 5 thousand megawatts, if the entire industry shifts to electric, this demand will increase rapidly.
Regarding the electricity ownership dispute that has been going on for the past few months, Shan A. Ashary said that the Saudi and Kuwaiti groups are currently the largest shareholders of K-Electric, with Al-Jamaiya and NIG holding 47 percent shares in KES Power, which makes up 30 percent of K-Electric, while claimant Isha Pak may have 5 percent.
The number of shares is about 80, the number of current investors in IGCF is more than 80, Mashreq Bank has also said that their 30% shareholding in IGCF is maintained.
In response to a question, he said, Isha Pak’s, according to the number of shares, become one member in the K-Electric Board, which we are ready to give.
Shan Ashary said that if any Pakistani investor wants to join legally, we will welcome him. To another question, he said that Pakistan is the best country for Saudi and other Gulf countries to invest. Yes, the returns in Europe are not the same as in Pakistan due to the rapidly declining population, in Pakistan with Saudi and Kuwaiti group investors, which happened in K-Electric, then private sector investors from these countries.
Very worried, it has become very difficult for foreign companies to remit their profits, there is a glimmer of hope after the establishment of Special Investment Facilitation Council (SIFC), one window operation and facilitating foreign investors.
Regarding the SIFC announcements, Shan Ashary said that at this time the board of Karachi Electric is fully active, board meetings are being held and the plan regarding full investment in Karachi has also been submitted to Nepra.