Shanghai Electric Power to abandon $1.77 bn Pakistan KE acquisition

Shanghai Electric Power Co., Ltd. is set to terminate its proposed acquisition of a 66.40% equity stake in K-ELECTRIC LIMITED (KE Company) in Pakistan, a project initiated in 2016. The decision comes after the transaction's counterparty failed to meet closing conditions and due to shifts in Pakistan's business environment. The company had planned to acquire 18,335,542,678 shares of KE Company from KES POWER LTD. for a consideration of $1.77 bn, with potential incentive payments up to $0.027 bn.

The proposed termination will be reviewed at the third extraordinary general meeting of shareholders on October 13, 2025. This decision follows a thorough review and aims to protect the interests of the company and its shareholders, as the unfulfilled closing conditions under the share purchase agreement grant Shanghai Electric Power the right to terminate. The company states that the termination will not have a material adverse impact on its production, operations, or financial condition.

In separate news, Shanghai Electric Power also proposes amendments to its Articles of Association. Revisions include clarifying that the director responsible for company affairs will serve as the legal representative and adjusting the composition of the board of directors, maintaining 14 directors, with one chairman and one executive director. These amendments will also be voted on at the upcoming general meeting.