上海电力终止购买巴基斯坦KE公司股权

Core Viewpoint - Shanghai Electric has terminated the major asset acquisition of a 66.40% stake in K-Electric Limited due to unmet closing conditions and changes in the business environment in Pakistan, marking a significant shift in the company's international development strategy [2][4][5]. Group 1: Termination of Acquisition - The decision to terminate the acquisition was not made hastily but followed a rigorous internal decision-making process, with the company having disclosed progress reports every 30 days for eight years [3]. - The final announcement regarding the termination was made on September 9, 2023, after the board of directors approved the proposal to terminate and write off the acquisition [3][4]. - The acquisition process began in March 2016, and despite ongoing efforts, the necessary conditions for closing were never met, leading to the decision to terminate the agreement [4][6]. Group 2: Reasons for Termination - The core reasons for the termination include the failure to meet the closing conditions outlined in the share purchase agreement and the adverse changes in the business environment in Pakistan [4][5]. - The regulatory changes in Pakistan, particularly the new multi-year tariff mechanism introduced by the National Electric Power Regulatory Authority (NEPRA) in July 2018, significantly reduced K-Electric's profitability and the value of the stake [4][6]. - Despite attempts to renegotiate the terms and adjust the transaction price, KES Energy Company did not accept the updated non-binding offer from Shanghai Electric [4][6]. Group 3: Impact on Company Operations - The termination of the acquisition is stated to have no significant adverse impact on Shanghai Electric's operations or financial status, as the closing conditions were never met [5]. - The company has indicated that the termination will not harm the interests of the company or its minority shareholders [5]. - Over the years, Shanghai Electric's revenue from overseas operations has remained relatively stable, with domestic sales continuing to dominate its income sources until recent years [6]. Group 4: Industry Context - The energy sector in China is undergoing a significant transformation, moving from traditional coal-based power to cleaner energy sources, with a strong push for wind, solar, and hydropower [7]. - As of mid-2023, the total installed power generation capacity in China reached 3.65 billion kilowatts, reflecting an 18.7% year-on-year increase, with non-fossil energy sources accounting for over 60% of the installed capacity [7]. - Shanghai Electric's own clean energy capacity stands at 61.83% of its total installed capacity, with significant contributions from wind and solar power [7].