Saudi Investor Signs Deal to Acquire Majority Stakes in KE
Saudi Investor Prince Mansour Bin Mohammed Al Saud has Signed a landmark deal to acquire majority Stake in K-Electric after Chinese firm had annulled its plan.
Earlier, Shanghai Electric Power has scrapped its long-delayed plan to acquire K-Electric. The Chinese power had termed Pakistan’s regulatory bottlenecks and shifting business environment as key hurdles in the $1.77 billion transaction.Nepra slashes K Electric tariff by Rs 2.59 per unit
In a major development marking strengthened economic ties between Saudi Arabia and Pakistan, Mr. Shehryar Chishti and Saudi investors had signed a Memorandum of Understanding (MoU) for the sale of a majority stake in his holdings of K-Electric (KE).
This landmark agreement has reflected the largest Saudi investment in Pakistan’s power sector to date in a bid to pave way for Saudi participation in the management and future strategic direction of K-Electric.
KE had already shareholdings of Saudi investors who were frustrated over regulatory environment in Pakistan. They have been pushing the government to resolve issues relating to tariffs.
The leadership of both countries has formally endorsed and congratulated the parties involved in this deal and recognizing the transaction as a milestone in advancing bilateral business-to-business (B2B) collaboration. The deal has reinforced Saudi Arabia’s growing commitment to Pakistan’s energy and infrastructure sectors.
Shanghai Electric, a subsidiary of the state-owned Shanghai Electric Group, had been pursuing the acquisition of 18.3 billion shares of K-Electric.
The deal worth $1.77 billion had been scrapped by Chinese firm. It also included a provision for an additional $270 million in performance-based bonuses. It depended on the utility’s operational outcomes. Both parties had made repeated extensions and negotiations since the agreement which was first inked in 2016, but the deal was not materialized.
On September 9, 2025, Shanghai Electric’s board of directors had formally granted approval to terminate and write off the acquisition plan.
