Abraaj Group has agreed to sell its majority stake in Pakistan's K-Electric (KE) to Shanghai Electric Power Co (SEP) for US$1.8 billion.
Abraaj Group fully controls KE via its power unit, KES Power Limited which holds 72.58% of its shares. Abraaj will divest the 66.4 percent stake of KE through KES Power subject to regulatory approvals being obtained.
The deal is will be one of the biggest transactions in Pakistan in the last decade.
According to sources, SEP was among a number of Chinese bidders, including China Southern Power Grid, which were lining up to acquire the stake.
K-Electric (formerly known as Karachi Electric Supply Company Limited) is a Pakistani vertically integrated electric corporation involved in generating, transmitting and distributing power to around 20 million inhabitants of Karachi.