K-Electric sold to Shanghai Power for Rs180 billion

[Dawood Ibrahim]

By Riaz AndyPosted on: 13 minutes ago

KARACHI: Shanghai Power has finally bought K-Electric for Rs180 billion on Wednesday.

The company formerly known as Karachi Electric Supply Corporation was privatized in 2005 for a sum of Rs16 billion rupees to a Saudi-Kuwaiti group. In those days the US dollar valued at Rs 59.75 at the inter-bank market. Going by those rates the company was privatized for $270 million which would now value at Rs28 billion.

The general perception was that privatization will improve financial condition of the company. In 2009 the company was sold to private equity firm Abraj Group with management control, for Rs 361 million. The US dollar valued at Rs81 then. The deal would value at Rs38 billion today.

Abraj invested Rs100 billion in K-Electric. For that loans were taken from international organizations. Later, these international organizations invested in the company.

These investments extended its transmission line and improved production. As a result, the company reaped profits.

But the world had its eyes on the sole company which supplied electricity to a city of 20 million people. And so a Chinese company bought it for Rs180 billion. For now, K-Electric is taking permission from customers and investors to complete the sale deed. It is expected that arrangements for the takeover will complete by February.


https://m.geo.tv/#category|latest-news|p126099

 

[Pandora]

They should also privitise rest of the companies like LESCO AND IESCO AND PESCO. People sitting in these organisations are one corupt SOBs.

 

[Srinivas]

First they destabilize the organizations and then they throw the mud on them finally when the time is right they will buy them cheaply to reap the benefits.

 

[illusion8]

First they destabilize the organizations and then they throw the mud on them finally when the time is right they will buy them cheaply to reap the benefits.

Doesn't look like a cheap buy.

 

[Srinivas]

Doesn't look like a cheap buy.

180 Billion rs for most populated and booming city of Pakistan, that is close to 2 Billion dollars.

Imagine the profits they get from this city which provides life line for 20 crore Pakistanis.

 

[Areesh]

180 Billion rs for most populated and booming city of Pakistan, that is close to 2 Billion dollars.

Imagine the profits they get from this city which provides life line for 20 crore Pakistanis.

Still it is not a cheap buy.

 

[Srinivas]

Still it is not a cheap buy.

total revenue of this company is 190 Billion PKR annually.

Lets say they are getting 20 % profit, then they get 40 Billion PKR as profit.

The sale also includes the power plants and distribution networks under k electric. Plus the city is going through change, the profits will shoot up.

Even though they say 180 billion I doubt Pakistani Govt. will get exactly 180 Billion, since the Top level security establishment and political set up will get their share.

 

[Areesh]

total revenue of this company is 190 Billion PKR annually.

Lets say they are getting 20 % profit, then they get 40 Billion PKR as profit.

The sale also includes the power plants and distribution networks under k electric. Plus the city is going through change, the profits will shoot up.

Even though they say 180 billion I doubt Pakistani Govt. will get exactly 180 Billion, since the Top level security establishment and political set up will get their share.

You can have your doubts. I don't find anything wrong with this deal.

 

[Srinivas]

You can have your doubts. I don't find anything wrong with this deal.

Those are not doubts, it is a just a basic info. I put there from the internet.

 

[Rehan khan 1]

First they destabilize the organizations and then they throw the mud on them finally when the time is right they will buy them cheaply to reap the benefits.

your comment is most appropriate. this is exactly the case of privatization at least in our country.

 

[I S I]

Privatize Wapda please.

 

[Rasengan]

180 Billion rs for most populated and booming city of Pakistan, that is close to 2 Billion dollars.

Imagine the profits they get from this city which provides life line for 20 crore Pakistanis.

What the hell is your problem. They purchased the company from another private entity called Abraaj Capital based in Dubai.

 

[Srinivas]

You cannot say project is corrupt without knowing the agreement terms and conditions...

2.This is between China and Pakistan as an Indian/s better we stay away.

They just bought the whole company and every one knows how political leaders look for their share.

What do you mean by it is between china and Pakistan? I have my right to comment.

 

[I S I]

You cannot say project is corrupt without knowing the agreement terms and conditions...

2.This is between China and Pakistan as an Indian/s better we stay away.

Woah

 

[RISING SUN]

What happening is that most of Groups in Pakistan are selling their projects to Chinese groups. It's like mass takeover. They have received some good deals otherwise selling your strategic infrastructure to another country nomatter how much friendlier is not the way forward. Simple strategic 101.