The Abraaj Group is likely to miss the deadline for the $1.8 billion deal to sell off its stake in K-Electric sale to China-based Shanghai Electric Power , media sources have reported. It is expected that Abraaj will seek an extension from the buyer as well as the regulator Securities and Exchange Commission of Pakistan (SECP). The delay has been caused due to a disagreement with the federal authorities over the settlement of financial dues. The deal was likely to be concluded by March 17, 2017.
Last year, the offshore Abraaj Group had decided to sell off its 66.4% stake in K-Electric to China-based Shanghai Power. The deal however, is contingent upon settlement of issues between the government and the seller.
The SECP law allows for an acquisition deal to conclude within six months of the buyer showing intent, spokesperson SECP, Bilal Rasul is reported to have said. He further added that the SECP can extend the deadline by three months but the parties have not applied for an extension.
Pakistan has not issued the National Security Clearance Certificate to Shanghai Electric Power for the sale purchase agreement owing to $1.24 billion which the K-Electric owes to two government entities, officials of Ministry of Water and Power and Sui Southern Gas Company have reported to have said. It is pertinent to mention that Shanghai Power is already running a nuclear plant in Pakistan.
It is expected that Abraaj Group may seek one-month extension from the Shanghai Electric to conclude the deal.
