ISLAMABAD- The Pakistani government and the K-Electric (KE) have finally agreed to sell off the KE to Shanghai Electric Power (SEP) after years of a standstill over the issue.
In 2005, Dubai-based private equity firm Abraaj Group, Saudi business group Aljomaih Holdings, and National Industries Group (NIG) of Kuwait had bought a 66.4 percent stake in KE. The government holds 24.36 percent shares in KE.
In 2016, the UAE consortium that holds the majority stake of the shares, decided to sell its stake to SEP. However, the transaction could not go through due to outstanding payment issues with the government.
The long-standing payment dispute finally saw a breakthrough, Arab News reported saying that the company officials confirmed the news on Sunday.
In March this year, Abdulaziz Hamad Al-Jomaih, Managing Director Investments at Aljomaih Holdings, visited Pakistan to resolve the issues impeding the SEP deal.
He met with Prime Minister Imran Khan, President Arif Alvi, and other key officials. In a statement after his visit, he said that the government of Pakistan had assured him of its support in expediting the approval process for the held-up tariff differentials of around Rs. 275 billion.