Business

KARACHI (Web Desk) – Chinese multinational Shanghai Electric is set to acquire K-Electric, in a $1.6 billion deal that will be the biggest private-sector acquisition in the country’s history.

China is stepping up investment in Pakistan as part of a $46 billion project unveiled last year that will link its western Xinjiang province to Gwadar port with a series of infrastructure, power and transport upgrades.

“We have received the public announcement of intention for acquisition of up to 66.4 percent of the shares of K-Electric Limited by Shanghai Electric Limited,” a Pakistan Stock Exchange notification said.

The Karachi Electric Corporation, set up in 1913 as a public-sector company, was sold to Saudi Arabia’s Aljomaih Group in 2005, who in turn sold it to the UAE’s Abraaj Capital.

K-Electric’s share price increased 1.32% to Rs9.21 at the Pakistan Stock Exchange (PSX) Tuesday.