KARACHI: The criticism on K-Electric seems to have an end as China’s state-backed Shanghai Electric Power on Tuesday has officially announced that the company is interested to acquire K-Electric. The metropolis will likely have a new electric supplier soon as a Chinese power company is all set to make an attractive purchase offer to buy majority stakes in Pakistan’s largest electric supply company, K-Electric. Muhammad Rizwan Dalia, Director Finance & Company Secretary, K-Electric said in a stock filing on Tuesday, ‘We have received a copy of the public announcement of intention for acquisition (directly or indirectly) of up to 66.40 percent of the voting shares of K-Electric Limited by Shanghai Electric Power Company Limited”. However, the said offer is subjected to due diligence and execution of definitive agreements. Shanghai Electric Power said that it is bidding to acquire a stake in Pakistani utility K-Electric Ltd, which has a total market value of $2.3 billion. Earlier on Monday, Abraaj Group, the Dubai-based private equity majority owner of K-Electric, had announced that the company is evaluating the possibility of divesting (directly or indirectly) its shareholding in K-Electric which will be subjected to a prescribed sale process, due diligence and execution of binding documentation including receipt of applicable regulatory approvals and satisfaction of other conditions precedent. Abraaj Group holds 66% indirect stake in K-Electric through KES Power Limited, a holding company, in which Abraaj Group had acquired majority stake in 2009 investing $360 million. Currently, KES Power holds 69.2% interest in K-Electric. Meanwhile, investors at Pakistan Stock Exchange (PSX) celebrated the news of current management’s exit. Nabeel Haroon, an analyst at JS research said K-Electric led the volumes at the local bourse on the back of notification disseminated in the market that Shanghai Electric Power Company has shown interest to acquire 66.40 percent of the utility’. Another analyst said K-Electric, once again attracted interest and churned volumes of nearly 70 million shares or up by 1.3 percent as intentions by Shanghai Electric Power Company to acquire 66.40 percent stake in the company were made public.