Shanghai Electric pulls out of $1.77 billion K-Electric acquisition deal

Shanghai Electric Power (SEP) has called off its $1.77 billion purchase of 18,335,542,678 shares in K-Electric (KE), a move that could have reshaped Pakistan’s energy sector. The announcement was made in a notice to the Shanghai Stock Exchange on Wednesday.

As per reports, the deal, originally set to acquire 66.4% of KE’s total shares, was intended to be paid in cash, with additional incentives of up to $27 million based on KE's operational performance.

However, SEP cited that the counterparty, KES Power Ltd., consistently failed to meet the preconditions for closing the deal, and that changes in Pakistan’s business environment made the transaction incompatible with SEP’s international development strategy. 

The company emphasized that the termination was made after careful analysis to protect the interests of its shareholders.

On September 9, 2025, SEP’s Board of Directors officially approved the resolution to terminate the acquisition. Despite the termination, SEP assured that the transaction did not negatively impact its operations or alter the operating environment significantly.