In a major development for Pakistan’s energy sector, Shanghai Electric Power (SEP) has called off its planned acquisition of a majority stake in K-Electric (KE), worth $1.77 billion.
The company announced the termination in a notice to the Shanghai Stock Exchange on Wednesday. SEP had initially planned to purchase 18.33 billion shares of KE from KES Power Ltd, representing 66.4% of the utility’s total issued share capital, along with performance-based incentives of up to $27 million.
Explaining the decision, SEP said it had followed all relevant laws and worked to move the transaction forward. However, it cited the counterparty’s repeated failure to meet closing conditions and changes in Pakistan’s business environment as reasons the deal no longer aligned with the company’s global strategy.
“After thorough research and analysis, and in order to safeguard the interests of the company and its shareholders, the board has approved the termination of this major acquisition,” the notice stated.
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SEP added that its board of directors formally approved the resolution on September 9, 2025, confirming the termination and write-off of the equity acquisition. The company further clarified that ending the deal would not have any significant negative impact on its operations or business environment.
