Shanghai Electric Power is bidding to acquire a stake of K-Electric Ltd.

China´s state-backed Shanghai Electric Power said it is bidding to acquire a stake in Pakistani utility K-Electric Ltd, which has a total market value of $2.3 billion.“Our company has embarked on preliminary work on the acquisition of a stake in K-Electric. We have not entered into any exclusive negotiations yet and the size of the stake has also not been firmed up,” Shanghai Electric said in a statement on the Shanghai stock exchange on Monday.It said it is not the only company participating in the bidding process.

Dubai-based private equity firm Abraaj Group has flagged its intention to sell its stake of about 66 percent in K-Electric, which supplies power to over 2.2 million customers in and around Karachi.As of Monday, Abraaj´s stake was valued at around $1.5 billion.

The Pakistan government owns about 24 percent in K-Electric.

Reuters

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