SEP Cancels $1.77B K-Electric Share Acquisition

Shanghai Electric Power (SEP) has abruptly terminated its $1.77 billion acquisition of 18,335,542,678 shares in K-Electric (KE), a deal poised to revolutionize Pakistan’s energy sector. The decision was disclosed via a notice to the Shanghai Stock Exchange on Wednesday.

Reports indicate the agreement, aimed at securing a 66.4% stake in KE, involved a cash payment with up to $27 million in performance-based incentives tied to KE’s operational success.

SEP pointed to KES Power Ltd.’s repeated failure to fulfill deal-closing preconditions and shifts in Pakistan’s business landscape that clashed with SEP’s global growth strategy as reasons for the withdrawal. The company stressed that the termination stemmed from meticulous analysis to safeguard shareholder interests.

On September 9, 2025, SEP’s Board of Directors formally endorsed the resolution to abandon the acquisition. SEP clarified that the deal’s collapse had no significant adverse effect on its operations or operating environment.