Shanghai Electric Power's KE acquisition faces uncertainty

Shanghai Electric Power (SSE:600021) announced that the acquisition of 66.40% of K-Electric Limited from KES POWER LTD., first proposed in 2016, remains incomplete due to ongoing disagreements regarding K-Electric's Multi-Year Tariff (MYT) with the National Electric Power Regulatory Authority (NEPRA) of Pakistan. While NEPRA has reconsidered the MYT, the terms are still not aligned with the original share purchase agreement, leading to continued negotiations. The company cautions that changes in electricity pricing could impact K-Electric's profitability and potentially lead to the termination of the transaction. Shanghai Electric is currently assessing the deal's feasibility amid these persistent challenges.