KARACHI: Shanghai Electric Power Company has officially terminated its long-pending plan to acquire a controlling 66.4 per cent stake in K-Electric Ltd, citing unfavorable changes in Pakistan’s business environment and unmet contractual conditions.
K-Electric, the sole power generator, transmitter, and distributor for Karachi and adjoining areas, was privatised in 2005. Shanghai Electric first agreed in 2016 to purchase the stake from Abraaj Group for \$1.77 billion. However, the deal remained stalled for years due to regulatory hurdles, liquidity issues tied to Pakistan’s circular debt crisis, and Abraaj’s collapse in 2019.
In its statement on September 9, 2025, Shanghai Electric said its board of directors had approved the termination of the proposed acquisition, adding that the transaction no longer aligned with the company’s international strategy. The company invoked its right under the Share Purchase Agreement, citing KES Power’s failure to meet closing conditions.
K-Electric is 66.4pc owned by Cayman Islands-based KES Power Ltd, itself controlled by IGCF SPV21 Ltd — linked to the now-defunct Abraaj Group. The Government of Pakistan holds 24.36pc shares, while institutional investors and the general public own the rest. A shareholder tussle between IGCF SPV21 Ltd and KES Power’s minority stakeholders has further complicated the utility’s ownership structure.
