ISLAMABAD – China’s Shanghai Electric Power (SEP) is expected to acquireK-Electric from the financial crisis-hit Dubai-based Abraaj Group in thesecond half of 2019, according to a private media outletlink.
A deal, signed about 32 months ago in October 2016 at $1.77 billion, islikely to be implemented in a few months after the National Electric PowerRegulatory Authority (NEPRA) recently revised the power tariff upwards forend-consumers by Rs2.15-3.63 per unit.
This (revised tariff) is a major breakthrough in the execution of thebusiness deal, remarked K-Electric Chairman Ikram Sehgal.
“Naturally, this should speed up the transaction, which has been pendingfor around three years now,” he said. “I think if no hiccup comes in theway, the Chinese firm will take over the company (K-Electric) bySeptember-October 2019.”
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Other issues were petty, including how much K-Electric’s debt would beremoved from the books, he said.
To recall, NEPRA had revised down the tariff for end-consumers by Rs3.50 toRs12.07 in March 2016 for the next seven years under the multi-year tariff(MYT) 2016-23.
