KARACHI: A bit of a commotion was caused in the corporate sector after the announcement at the Pakistan Stock Exchange (PSX) of ‘withdrawal of public announcement of intention (PoI) to acquire 18,336 million shares or 66.40 per cent stake in K-Electric Ltd by Shanghai Electric Power Company Ltd’.

It was mistaken by some people to mean that the China’s Shanghai Electric Power Company was walking out of the deal to acquire majority shares in K-Electric from the Dubai-based Abraaj Group. That however is not the case.

The notice was filed at the PSX by the manager to the offer, Arif Habib Ltd to intimate that the time period for making the public announcement of offer – as extended by the Securities and Exchange Commission of Pakistan – thrice before (for six months each), to Dec 24, 2018 was about to expire.

The manager to offer made the announcement on the basis that ‘certain regulatory and other approvals for the transaction remained outstanding’.

Arif Habib Ltd did state that pursuant to Regulation 21 (1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017 read with the Securities Act 2015, “we hereby give notice that at the expiry date, the PoI stands withdrawn”.

The manager to the offer added: “As the acquirer continues to be fully committed to consummate the transaction pending receipt of regulatory and other approvals, the acquirer shall make a fresh public announcement of intention in accordance with the prescribed formalities immediately with effect from the expiry date”.

Shanghai Electric delegation led by Chairman Wang Yudan met with Prime Minister Imran Khan on Dec 7 where he briefed the PM on the company’s decision to invest in the power sector in the country.

In order to dispel any doubts, Arif Habib Ltd also elaborated that the process of withdrawal and re-issuance of the PoI is being undertaken to ensure compliance with the law. Accordingly, the transaction would be consummated immediately upon receipt of remaining regulatory and other approvals.

Published in Dawn, December 21st, 2018