ISLAMABAD – One of the Middle East largest fund Abraaj is close to reachingagreement with the Pakistan government to sell its 66 per cent stake inKarachi-based electricity company, K-Electric to a Chinese group,reports *FinancialTimes link*.
Two years back, K-Electric’s sales price to Shanghai Electric Power wasquoted at about $1.8 billion, which would have earned Abraaj about $450million.
However, according to senior people at Abraaj, the deal, which waspreviously held up due to regulatory approvals is being renegotiated at alower price.
For the creditors of the Dubai based Abraaj, the proposed sale is stilllikely to prove the biggest source of recovery funds and is will alsoprovide some money to investors, the people added.
“There is more momentum than ever before,” one Abraaj executive said, asreported by *Financial Timeslink*.
Abraaj, once the Middle East’s largest buyout fund with close to $14bn ofassets under management, was sent into a death spiral last year afterinvestors accused the indebted firm of misusing funds. However, Arif Naqvi,the companies Pakistani-born founder has denied any wrongdoing.