According to Saudi Aljomaih Group investment consultant Shan Abbas Ashary, Shanghai Electric has resubmitted an expression of interest to purchase K-Electric (KE), Karachi’s sole power utility.
Over six years earlier, in October 2016, the Chinese corporation had agreed to acquire 66.4% shares in the KE from the existing foreign shareholders at a price of $1.77 billion.
Six years have passed since that offer was made, Ashary told a group of journalists on Tuesday night, and he is hoping that the Shanghai Electric will increase the stakes to $2 billion now.
He continued by saying that Karachi residents would gain a lot if an agreement could be made between Shanghai Electric and KE.
He noted that Karachi’s demand ought to have reached five thousand megawatts by now.
Ashary followed by saying that this need would expand significantly if all the city’s industries converted to electric power.
Ashary stated that Saudi and Kuwaiti groups were the largest shareholders in the KE at the present time, which was mentioned in the context of the electrical ownership issue that has been going on for the past few months.
He said that the Aljomaih Group in Saudi Arabia and the National Industries Group (NIG) in Kuwait owned 47% of KES Power, which equated to 30% of KE.
He further mentioned that Asia Pak Investment Company owned about five percent of Karachi’s electricity distribution company.
Ashary explained that there are currently more than eighty investors in the Infrastructure Growth and Capital Fund (IGCF).
He went on to say that the United Arab Emirates-based Mashreq Bank has also confirmed that its 30% stake in the IGCF had not been diluted.
According to Ashary, Asia-Pak is entitled to a seat on the KE board due to the size of its shareholdings, and the utility is happy to oblige.
According to the Aljomaih Group’s consultant, the company would gladly accept any law-abiding Pakistani investor who wished to join them.
According to Ashary, Pakistan is the ideal location for Saudi Arabia and other Gulf states to set up shop.
Because of its declining population, Europe does not offer the same returns as Pakistan, he said.
He claimed that it had become exceedingly difficult for overseas businesses to repatriate their earnings, but that things were looking up with the advent of the Special Investment Facilitation Council (SIFC).
He went on to say that it was heartening to hear that the SIFC would be implementing a single-window system and making it easier for outside investors.
Ashary promised that he and the SIFC administration will meet soon.
He stated that during the last meeting of the SIFC, the topic of Aljomaih Group was mentioned, but so far there had just been conversations and no tangible steps were taken.
According to Ashary, the KE board of directors is very active right now.
He went on to say that the KE board was meeting regularly and had presented a proposal to the National Electric Power Regulatory Authority (Nepra) for substantial investment in Karachi.
