SEP(SH:600021) Zhong Guo Ji Jin Bao·2025-09-09 15:35Core Viewpoint - Shanghai Electric has terminated its plan to acquire 66.4% of K-Electric Limited in Pakistan after over nine years of planning, citing changes in the business environment and unmet conditions for the deal [2][6][8]. Group 1: Termination of Acquisition - On September 9, Shanghai Electric announced the termination of its acquisition of 183.36 billion shares of K-Electric, originally valued at $1.77 billion [2][3]. - The decision was made during the company's ninth board meeting, where the proposal to terminate the acquisition was approved [3]. - The company stated that the termination of the transaction would not have a substantial impact on its operations or financial status [5][7]. Group 2: Reasons for Termination - The termination was attributed to the failure of the counterparty to meet the closing conditions and changes in the business environment in Pakistan, which no longer aligned with the company's international development strategy [6][8]. - Shanghai Electric emphasized that the acquisition had been in planning since 2016, with multiple disclosures made over the years regarding the transaction [6]. Group 3: New Investment Plans - Concurrently, Shanghai Electric announced plans to invest 6 billion yuan in two new projects: the Fengxian No. 1 offshore photovoltaic project and a 400,000 kW wind power project in Mudanjiang, Heilongjiang [8]. - The Fengxian project will have a capacity of 500,000 kW and a total investment of up to 3.78 billion yuan, while the wind power project will require up to 2.26 billion yuan [8]. - Both projects will be financed with 20% equity and the remainder through loans, reinforcing the company's commitment to green energy initiatives [8].