Shanghai Electric Power's KE acquisition faces further delay

Shanghai Electric Power (SSE:600021) announced that the acquisition of a 66.40% stake in K-Electric Limited from KES POWER LTD., initially proposed in 2016, is still pending completion. The primary hurdle remains the multi-year tariff (MYT) determination by Pakistan's National Electric Power Regulatory Authority (NEPRA). Despite revisions to the MYT, differences persist compared to the original share purchase agreement, leading to continued negotiations between Shanghai Electric Power and the counterparty. The company acknowledges that changes in electricity tariffs could impact K-Electric's profitability and potentially lead to the termination of the transaction. Shanghai Electric Power is currently assessing whether the transaction still meets the conditions for implementation, with further announcements to follow as developments unfold.