Shanghai Electric committed to KE deal

KARACHI: Shanghai Electric is committed to completing its deal with K-Electric for the acquisition of 66.4 per cent share in the power company.

“On behalf of the acquirer, we wish to reiterate that the acquirer continues to be fully committed to consummate the transaction pending receipt of regulatory and other approvals,” Arif Habib Ltd (AHL) said in a stock exchange filing on Wednesday.

Some misunderstanding appears to have been caused by nearing of the lapse in the prescribed time period for making public announcement of offer (as extended by the Securities and Exchange Commission of Pakistan) i.e. June 30, 2017. “The public announcement of intention shall be published in one English and one Urdu language daily newspaper on June 17, 2007,” AHL told the stock exchange on Wednesday.

The issue of acquisition of 66.4pc shares in K-Electric by Shanghai Electric Power created confusion due to two separate notices released by AHL, the manager to the offer, on Tuesday and Wednesday.

In a notice released on Tuesday to the PSX, AHL stated that the public announcement of intention (PoI) made by Shanghai Electric Power Company Ltd dated Aug 30, 2016 to acquire up to 18.335bn shares of K-Electric, representing 66.4pc of the total issued share capital of K-Electric, was subject to regulatory and other approvals.

“We in our capacity as manager to the offer would like to intimate that the time period for making public announcement of offer will lapse on June 30, 2017 on the basis that certain regulatory and other approvals for the transaction remain outstanding,” AHL said. “We hereby give notice that as of the expiry date, the PoI stands withdrawn.”

The manger to the offer also said that as the acquirer continued to be fully committed to consummate the transaction pending receipt of regulatory and other approvals, the acquirer shall make a fresh public announcement of intention in accordance with the prescribed formalities immediately with effect from the expiry date.

In a letter to the PSX, K-Electric’s Director Finance and Company Secretary Muhammad Rizwan Dalia also referred to “a copy of the withdrawal of public announcement of intention for acquisition by Shanghai Electric Power Company Limited”. However, the notice did not accompany a copy of expression of such intention by the Shanghai Electric Power Limited.

On Wednesday, Arif Habib Limited furnished a fresh copy of public announcement of intention by Shanghai Electric Power Company, received by the K-Electric, to directly or indirectly acquire up to 18.335bn ordinary shares of K-Electric, subject to receipt of requisite regulatory and other approvals.