Shanghai Electric Extends Timeline for K-Electric Share Acquisition Offer

Karachi, Shanghai Electric Power Company Limited, the acquirer, has extended the timeline for its public offer to acquire a substantial portion of K-Electric Limited’s shares. This update was communicated to the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange.

The original Public Announcement of Intention (PAI) to acquire 18,335,542,678 ordinary shares of K-Electric Limited, which constitutes 66.40% of its total issued and paid-up capital, was published on July 25, 2023. The transaction faced delays due to pending regulatory approvals from relevant authorities in the People’s Republic of China and Pakistan.

Despite taking all reasonable steps to obtain these approvals, some are yet to be issued, preventing the completion of the transaction. The parties involved continue to work diligently to expedite the approval process. However, certain regulatory conditions necessitate internal approvals from various line ministries and departments, a process beyond the acquirer’s control.

Initially set for January 21, 2024, the deadline for the public announcement of the offer has now been extended by 90 days. This extension, effective until April 20, 2024, is in accordance with Regulation 7(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Take-Overs) Regulations, 2017, and its subsequent amendments.

Arif Habib Limited, the manager to the offer, expressed confidence in the continued support from regulatory bodies and looks forward to a positive response in completing this significant transaction.