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Finance Minister Asad Umar led Economic Coordination Committee (ECC) of the Cabinet, which is scheduled to meet on Monday (today), will go through the $1.77 billion deal between M/s Abraaj Group of Dubai and China's M/s Shanghai Electric Power (SEP) for sale purchase of 66.4 percent stake and examine reasons for the delay in its clearance and future line of action. Privatisation Division has submitted a summary to the ECC about a deal between KE and SEP.

According to sources, M/s SEP which is closely monitoring all affairs of KE wrote a letter to the federal government and sought help on this issue and its delegation is in the federal capital. Finance Minister, Asad Umar and Prime Minister's Advisor on Commerce, Textile, Industries and Investment, Abdul Razak Dawood held a meeting on Friday evening in the Finance Ministry to discuss the pros and cons of the deal. An inter-ministerial meeting is scheduled on Monday in Finance Division prior to the ECC meeting.

According to officials privy to new update, both M/s Abraaj Group and M/s SEP have not shared their deal with the government or Inter-Services Intelligence (ISI). K-Electric Ltd formerly Karachi Electric Supply Company Ltd (KESC) is partially owned by KES Power Limited (previously a consortium member of the SPA of November 14, 2005 "Original SPA", a company incorporated under the laws of the Cayman Islands now comprising Abraaj Entity 50%, Al Jomaih Power Limited 30% and Denham Investment Limited 20%). KES total share holding of K-Electric is 66.40% and it entered into a Sale and Purchase Agreement (SPA) on October 28, 2016 with Shanghai Electric Power Company Ltd (incorporated under the laws of the People's Republic of China).

According to Privatisation Division, PC had received agreements in the shape of Extinguishment Deed and Deed of Undertaking, drafts of which have been agreed between the PC, KES Power and the proposed purchaser SEP signing of which would extend the provisions of the Original SPA to the current purchaser as well.

Copyright Business Recorder, 2018


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