$1.8 billion mega deal in offing in Pakistan: Report

$1.8 billion mega deal in offing in Pakistan: Report

ISLAMABAD - One of the Middle East largest fund Abraaj is close to reaching agreement with the Pakistan government to sell its 66 per cent stake in Karachi-based electricity company, K-Electric to a Chinese group, reports *Financial Times link*.

Two years back, K-Electric’s sales price to Shanghai Electric Power was quoted at about $1.8 billion, which would have earned Abraaj about $450 million.

However, according to senior people at Abraaj, the deal, which was previously held up due to regulatory approvals is being renegotiated at a lower price.

For the creditors of the Dubai based Abraaj, the proposed sale is still likely to prove the biggest source of recovery funds and is will also provide some money to investors, the people added.

“There is more momentum than ever before,” one Abraaj executive said, as reported by *Financial Times link*.

Abraaj, once the Middle East’s largest buyout fund with close to $14bn of assets under management, was sent into a death spiral last year after investors accused the indebted firm of misusing funds. However, Arif Naqvi, the companies Pakistani-born founder has denied any wrongdoing.