KARACHI – Shanghai Electric Power (SEP) officially terminated its $1.77 billion agreement to acquire a 66.4% stake in Pakistan’s K-Electric (KE).
The planned purchase involved 18.34 billion shares held by KES Power Limited and included potential performance-based incentives of up to $27 million.
SEP cited repeated failures by the counterparty to meet closing conditions, as well as changes in Pakistan’s business environment that made the acquisition inconsistent with the company’s international growth strategy, as key reasons for the cancellation.
The decision was approved by SEP’s board during a meeting on September 9, 2025. The company emphasized that the termination protects both SEP’s interests and those of its shareholders.
Shanghai Electric was in talks to acquire stake in K-Electric, Karachi’s sole electricity provider, for over five years. The deal previously faced delays due to regulatory hurdles and financial issues from rising circular debt.
Pakistani government owns 24.4% of K-Electric, and Shanghai Electric reaffirmed its interest in the acquisition, originally valued at $1.77 billion in 2016.
