Shanghai Electric to Pay $1.8 Billion for Stake in K-Electric

  • Chinese utility gains access to 2.5 million Pakistani clients
  • Buyout firm Abraaj sells stake it’s held in utility since 2009
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State-backed Shanghai Electric Power Co. agreed to pay buyout firm Abraaj Group $1.77 billion for a controlling shareholding in Pakistani utility K-Electric, gaining access to 2.5 million customers in the south Asian country’s most populous city.

Abraaj is selling its 66.4 percent stake in K-Electric through its KES Power unit, according to a statement posted on its website, after first investing in the company in 2009. K-Electric was formerly known as Karachi Electric Supply Co. and has exclusive power distribution rights for the city and adjoining areas.