SEP(SH:600021) Mei Ri Jing Ji Xin Wen·2025-09-16 13:43Core Viewpoint - Shanghai Electric has become a strong performer in the new energy sector since early August, but it faced a setback by terminating a nearly ten-year overseas asset acquisition plan [1][3]. Group 1: Termination of Acquisition - The termination of the acquisition is linked to changes in the local electricity pricing mechanism in Pakistan, which affected the profitability and valuation of K-Electric Limited [3][4]. - The acquisition plan, initiated in October 2016, involved a cash purchase of 66.40% of K-Electric for $1.77 billion, with potential additional payments based on performance [3][4]. - The decision to terminate was made after the seller failed to meet the conditions for closing the deal and due to adverse changes in the business environment in Pakistan [3][4]. Group 2: Impact on Company Strategy - Despite the termination, the company reassured investors that it would not affect its overseas strategic layout, highlighting its significant investments in Japan, Hungary, and Turkey [4]. - The company remains committed to its strategy of strengthening its domestic operations while pursuing international growth [4]. Group 3: Corporate Structure and Management - The establishment of a wholly-owned subsidiary, "Electric Power International," with a registered capital of 1 billion yuan, was noted, and its board includes members overlapping with Shanghai Electric's management [1][6]. - The management of Shanghai Electric confirmed that they do not hold any administrative positions in "Electric Power International" beyond their roles as directors or supervisors [6]. Group 4: Stock Performance - Following the announcement of the acquisition termination, Shanghai Electric's stock experienced a temporary drop but quickly rebounded, indicating continued investor interest [4][5].