The Abraaj Group on Sunday announced that a $1.77 billion stake in K-Electric will be sold to China’s state-backed Shanghai Electric Power (SEP).

The Abraaj Group boasted that the company has undertaken one of the largest private sector transactions in the country.

"Upon completion, this will be one of the largest private sector transactions in Pakistan and represent one of the global power industry’s most well-recognised operational turnaround stories," said a press release issued by the Abraaj Group.

The Abraaj Group has entered into "a definitive agreement to divest its stake in K-Electric to Shanghai Power Company for $1.77bn," the statement said.

Chairman of SEP Wang Yundan said, "SEP appreciates what Abraaj has achieved at K-Electric over the past seven years and recognises the performance and capability of K-Electric’s management team."

"SEP will leverage its own strengths as a strategic investor and further realise K-Electric’s potential to provide better services to the people of Pakistan and the Government of Pakistan. SEP is confident about working together with Abraaj in the future to transform K-Electric into one of the best companies in Pakistan."

Commenting on the exit, Abraaj Group Founder and Group Chief Executive Arif Naqvi said, "Today marks a milestone... as we enter into a definitive agreement to divest our stake in a high-performance business as market leader to a strategic buyer who is fully committed to continuing this success story into the future."

K-Electric serves 2.5 million consumers in and around Karachi. The company, formerly known as the Karachi Electric Supply Company, was incorporated in 1913 and is a publicly listed fully integrated power utility involved in generation, transmission and distribution. The company was privatised in 2005 and Abraaj took a majority stake in 2009 through its funds, the statement said.

Shanghai Electric Power, a subsidiary of the State Power Investment Corporation of China, is engaged in the generation and transmission of electricity, and the operation and maintenance business in the energy service sector, it said.

Read more: Editorial — Chinese interest in K-Electric </s> UBAI: Abraaj Group has agreed to sell its majority stake in Pakistan's K-Electric to Shanghai Electric Power Co (SEP) for $1.77 billion, the emerging market-focused private equity firm said on Sunday.

The transaction is the largest M&A deal in Pakistan in a decade, and comes at a time of heightened Chinese interest in investing in the South Asian nation as part of its "One Belt, One Road" initiative.

Abraaj-controlled KES Power will divest the 66.4 percent stake subject to regulatory approvals being obtained.

SEP was among a number of Chinese bidders, including China Southern Power Grid, which were lining up to acquire the stake, sources told Reuters in August.

Chinese companies' interest comes after China last year announced energy and infrastructure projects worth $46 billion in Pakistan, with a view to opening a trade corridor linking western China with the Arabian Sea.

K-Electric is Pakistan's biggest electricity company, supplying power to 2.5 million customers in and around Karachi, the country's biggest and wealthiest city.

The private equity firm first acquired its stake in K-Electric in 2009, but said in June 2014 that it had mandated Citigroup to evaluate options for the investment.

"SEP will leverage its own strengths as a strategic investor and further realize K-Electric's potential to provide better services to the people of Pakistan and the government of Pakistan," SEP Chairman Wang Yundan said in the statement.

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0 </s> General view of the K-Electric's Power Plant located in Bin Qasim, on the outskirts of Karachi, Pakistan (Reuters file photo)

KARACHI, Pakistan — China's Shanghai Electric power company will buy a controlling stake in K-Electric, a power generation and distribution company in Pakistan's largest city, for $1.77 billion, K-Electric's parent company announced in a statement on Sunday.

Dubai-based Abraaj Group said it had entered into a definitive agreement with China's state-backed Shanghai Electric to divest its 66.4 per cent stake in K-Electric .

K-Electric serves around 2.2 million customers in and around Karachi, Pakistan's largest city with a population of about 20 million. It is involved in both generation at thermal power plants and power distribution.

"Today marks a milestone in that partnership as we enter into a definitive agreement to divest our stake in a high performance business and market leader to a strategic buyer who is fully committed to continuing this success story into the future," Arif Naqvi, Abraaj's chief executive, said in a statement.

When completed, the deal will be biggest M&A agreement in Pakistan in a decade. Large parts of the Pakistani economy remain nationalised, or held by a few private businessmen, rather than diversified companies.

"The K-Electric transaction only marks the beginning of SEP's cooperation with Abraaj and we look forward to further collaboration between the two parties in many other areas in the future," Wang Yundan, Shanghai Power's chief executive, said in a statement.

Shanghai Electric announced its intention to bid for the stake in August.

Chinese companies' interest in Pakistan is growing after China announced energy and infrastructure projects worth $46 billion in the South Asian nation last year, with a view to opening a trade corridor linking western China with the Arabian Sea. </s> Korea Electric Power Co. (NYSE:KEP) has been given an average recommendation of “Hold” by the eleven analysts that are covering the firm, MarketBeat.com reports. Nine research analysts have rated the stock with a hold rating and two have issued a buy rating on the company.

Several brokerages recently commented on KEP. Daiwa Capital Markets downgraded shares of Korea Electric Power from an “outperform” rating to a “hold” rating in a report on Wednesday. HSBC downgraded shares of Korea Electric Power from a “buy” rating to a “hold” rating in a report on Tuesday, February 13th. Goldman Sachs upgraded shares of Korea Electric Power from a “sell” rating to a “neutral” rating in a report on Friday, February 23rd. Finally, Macquarie downgraded shares of Korea Electric Power from an “outperform” rating to a “neutral” rating in a report on Friday, February 2nd.

KEP stock traded up $0.08 during trading on Wednesday, hitting $14.69. 532,013 shares of the stock were exchanged, compared to its average volume of 524,813. Korea Electric Power has a 12-month low of $14.50 and a 12-month high of $21.59. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.56 and a current ratio of 0.82. The company has a market cap of $18,693.99, a P/E ratio of 7.10, a PEG ratio of 0.95 and a beta of 0.46.

Korea Electric Power (NYSE:KEP) last issued its quarterly earnings results on Monday, December 18th. The utilities provider reported $1.05 EPS for the quarter. The company had revenue of $14.57 billion for the quarter. Korea Electric Power had a net margin of 2.31% and a return on equity of 1.95%. sell-side analysts forecast that Korea Electric Power will post 0.98 earnings per share for the current year.

A number of large investors have recently modified their holdings of KEP. We Are One Seven LLC bought a new position in Korea Electric Power during the 4th quarter valued at about $150,000. Signaturefd LLC purchased a new stake in Korea Electric Power in the 4th quarter valued at about $185,000. Jane Street Group LLC purchased a new stake in Korea Electric Power in the 3rd quarter valued at about $307,000. Hanson & Doremus Investment Management boosted its position in Korea Electric Power by 31.8% in the 4th quarter. Hanson & Doremus Investment Management now owns 18,425 shares of the utilities provider’s stock valued at $326,000 after buying an additional 4,445 shares during the period. Finally, Cubist Systematic Strategies LLC boosted its position in Korea Electric Power by 33.7% in the 3rd quarter. Cubist Systematic Strategies LLC now owns 37,233 shares of the utilities provider’s stock valued at $624,000 after buying an additional 9,393 shares during the period. Institutional investors own 4.88% of the company’s stock.

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Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity.

Receive News & Ratings for Korea Electric Power Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Korea Electric Power and related companies with MarketBeat.com's FREE daily email newsletter. </s> State-owned utility Qatar General Water & Electricity Corp. (KAHRAMAA) has awarded Siemens the largest contract to-date in Qatar for the expansion of the country's power transmission network. As part of the deal, valued at EUR790 million, Siemens will deliver 35 turnkey super and primary substations for Phase 13 of the Qatar Power Transmission System Expansion project. This marks a significant milestone for Siemens, which has maintained involvement in every stage of the project since Phase 4. Completion is scheduled in two years' time.

Siemens will be responsible for the design, engineering, supply, installation, and commissioning of the substations for the 400-kilovolt (kV), 220-kV, 132-kV, 66-kV, and 11-kV voltage levels, including gas-insulated switchgear, transformers, and control and protection equipment. Since the upgrade program started in 2005, Siemens has installed more than 120 substations and approximately 1,500 kilometers of high-voltage cable. With this new order intake, our completed and under execution projects with KAHRAMAA total nearly EUR2.5 billion.

"We are delighted to build on a trusting relationship with KAHRAMAA, as we embark on yet another important phase to upgrade Qatar's power network. Siemens is committed to supplying reliable and innovative products to this highly ambitious project that will meet growing demand for electricity in a fast-developing country," said Ralf Christian, CEO of Siemens Energy Management Division.

As part of this contract, an existing 'super substation' – one that allows multiple voltage settings – in Doha will be upgraded with new 400kV/200kV gas-insulated switchgear and associated equipment, before connecting to the grid. Another substation will be used to meet rising demand for electricity in Al Jahhaniya and surrounding area, including temporary power feed to Rayyan Stadium, one of the venues for the upcoming world soccer championship. Substations will also feed power to steel, oil and gas and petrochemical facilities in Mesaieed industrial area, as well as Al Sadd area in Doha. Overall, the substations are required to supply power for ongoing infrastructure development projects, schools, hospitals, industries and residential complexes in and around Doha, Qatar's capital city.

In addition to Phase 13, Siemens also received a second order from KAHRAMAA to supply and install more than 2,170 medium-voltage switchgear boards. The 8DJH switchgear will be used as ring main units (RMU) in the 11 kV distribution network. RMUs protect, for example, transformers connected to the grid against overloads and short-circuits, ensuring a reliable power supply. The switchgear will be manufactured in Frankfurt, with the first units expected to go into operation by end-2017. The order is valued at roughly EUR27 million.

Demand for electricity in Qatar has been steadily rising over the past decade, thanks to its growing population and a government strategy that seeks to develop various sectors of the economy and reduce reliance on hydrocarbons. As a local company that has been operating in the Qatari market for more than four decades, Siemens has almost 500 employees in the country and contributes to transmitting and distributing more than 60 percent of the power generated there. Its partnership with KAHRAMAA dates back to 2005 when the utility was founded. Siemens is currently executing an order valued at EUR470 million to deliver 18 turnkey substations for KAHRAMAA's Phase 12, part of its plans to expand its power transmission network. KAHRAMAA has closely aligned its strategy with the Qatar National Vision 2030. Phase 13 of the Qatar Power Transmission System Expansion project is due for completion by 2020, helping the country prepare for hosting major sports events in 2022. </s> Berkshire Hathaway Energy, a unit of Warren Buffett’s Berkshire Hathaway, agreed to acquire Oncor Electric Delivery Company for an equity value of about $11.25 billion, the company said in a statement on Friday.

Reuters reported on Thursday Berkshire Hathaway Energy was nearing a deal to acquire Oncor. </s> General Electric Co ( ), banking on a recovery in oil prices, said on Monday it would merge its oil and gas business with No. 3 oilfield services provider Baker Hughes Inc ( ).

GE will own 62.5 percent of the new company, which will have combined revenue of $32 billion, while Baker Hughes shareholders will own 37.5 percent.

Baker Hughes shareholders will get a special one-time cash dividend of $17.50 per share after the deal closes. </s> TEHRAN: French energy giant Total will finally sign its multibillion-dollar agreement to develop an Iranian offshore gas field on Monday, the oil ministry said, in the biggest foreign deal since sanctions were eased last year.“The international agreement for the development of phase 11 of South Pars will be signed on Mon-day in the presence of the oil ministry and managers of Total, the Chinese company CNPC and Iranian company Petropars ,” a ministry spokesman told AFP.Total signed a preliminary deal with Iran in November, taking a 50.1% stake in the $4.8 billion (4.2 billion euro) project. China National Petroleum Corporation (CNPC) will own 30% and Petropars 19.9%.Total will put in an initial $1 billion for the first stage of the 20-year project.It was initially due to sign the contract in early 2017, but CEO Patrick Pouyanne said in February that it would wait to see whether the US administration of President Donald Trump reimposed sanctions on Iran. </s> NEW YORK — General Electric and Baker Hughes are combining their oil and gas businesses to create a powerful player in an energy sector buffeted by years of weak prices.

Under the deal announced Monday, General Electric Co. will own 62.5 percent of the new company and Baker Hughes Inc., which provides drilling services for oil and gas companies, will own the rest. Baker Hughes shareholders will receive a one-time cash dividend of $17.50 per share.

The boards of both companies have approved the deal, which is expected to close mid-2017. It still needs approval from Baker Hughes shareholders.

The new business will have dual headquarters in Houston and London.

Shares of Baker Hughes Inc. are up more than 6 percent before the opening bell, while GE’s stock is up slightly.
The Dubai based Abraaj Group agreed to sell its majority shares in K-Electric to China’s state-backed Shanghai Electric Power Company with a transaction of US $ 1.77 billion.