K-Electric sold to Shanghai Power for Rs180 billion

[Shotgunner51]

It is still a good sell-out and China paid a reasonable amount for a establishment that sometimes does not exist in city during Summer. None ever asked that why the same establishment was privatized and sold, in first place then to another one that it has been turned into something like that IMO, China still paid excessively. The company could have been more profitable if was handed over to loyal and honest people.

Faryal Talpur (Zardari's Sister) and Nephew/Niece of MQM's officials (Farooq Sattar & Babar Ghouri IMO) bought K-Electric previously with maximum shares to Zardari Cult. They sold every inch of copper collected from City Power Lines
by installing Silver cable as replacement that breaks regularly while cannot stand the load and heat of summer. The cult milked the city and establishment both for personal greed that IMO, China would be starting the operation from Zero as I
am sure there will be only Cats and Dogs left in storage house etc to roam around and scrape. The previous cult bought power from WAPDA as much that never provided to Public but to save face and complains against cheap cables etc, started to disconnect the power/load-shedding even sometimes without any time frame, against the charges that residents are paying for 24/7 service. The cult as sabotaged the main dependence of the City by doing so with K-Electric.

The cult not just looted the company but was involved for every type of corruption that even did not spare the poor or
middle class. Most of influential people reduced or discounted their bills especially industrialist & mill owners while the
same was paid by the middle class or poor as discounted/reduced amount was divided among the bills of such areas
and charged from them. The previous Admin, IMO, deserves to be hanged openly or I wish that the upcoming Adminis-tration may reveal corruption and loot done by the cult in past, to the public so people become aware more about them.

However, by looking at screams of many around, I thought we are handing them freely though wasn't bad idea at all.

I have little knowledge about domestic politics so I can't comment on that.

What I would like to comment is difference in ownership structure can affect company performance.

• PE capital (in this case, Saudi-Emerati fund) goes for numbers in financial statements, short-term financial reward, while other parameters say long-term sustainability, customer satisfaction are of lower priorities. In terms of style, they give more free hand to management of a company, asking only for financial results.
• If it's acquired by another company (in this case, Shanghai Electric) in the same business, the acquirer tends to be much more hands on in every possible business details, and may bring a lot more changes (whether desirable or not is another matter) in ways business are conducted.

Shanghai Electric Power is a large listco with proven track record in this line of business, I believe this deal will bring positive changes to K-Electric. I won't exclude the possibility that this deal is even driven proactively by current Pakistani administration to foster a change.

 

[The Eagle]

I have little knowledge about domestic politics so I can't comment on that.

What I would like to comment is difference in ownership structure can affect company performance. PE capital goes for numbers, short-term financial reward, care less about others say long-term sustainability, customer satisfaction, hence they give more free hand to management of a company. If it's acquired by another company in the same business, the acquirer tends to be much more hands on in details, and may bring alot more changes (whether desirable or not is another matter).

I will rephrase what people think of this change. They are more happy to hear about China taking over that at-least corrupt mafia will be going home and they will see progress and service at best. Hoping to have a system contrary to previous one that was more loot and less service. Company has the potential due to a massive consumer/customers but management lacked the approach to utilize the same at best and paid more attention for personal profit.

 

[Lagay Raho]

Time for China to show that they can deliver

 

[SHAH820]

I think it is a great move K-electric was already sold to UAE company to Abraaj group in 2009 which have its 60% shares now those 60% shares are bought by Shanghai electrics.
Abraaj group have failed to manage k-electric as it was unable to produce required amount to energy (about 2300 MW) they only able to produce 1100 MW which is the cause of high electricity prices now shanghai electrics is investing heavily in k electrics

 

[somebozo]

I think it is a great move K-electric was already sold to UAE company to Abraaj group in 2009 which have its 60% shares now those 60% shares are bought by Shanghai electrics.
Abraaj group have failed to manage k-electric as it was unable to produce required amount to energy (about 2300 MW) they only able to produce 1100 MW which is the cause of high electricity prices now shanghai electrics is investing heavily in k electrics

Produce electricity from fart gas??
As far as I think K-electric does not own power plants which at large are private..it is only a distribution company..

 

[SHAH820]

Produce electricity from fart gas??
As far as I think K-electric does not own power plants which at large are private..it is only a distribution company..

K-electric is an energy generating ,distributing ,transmitting company
here is an para from wiki

K-Electric (formerly known as Karachi Electric Supply Company Limited) is a pakistani vertically integrated electric -energy corporation involved in generating, transmitting, and distributing electrical power to around 20 million inhabitants of karachi, sindh, pakistan. It employs over 11,000 people and covers an area of 6,500 square kilometers with industrial, commercial, agricultural and residential areas falling under its network

another

By 2012, KE achieved Gross Dependable Generation Capacity of 1670 Megawatts. The latest addition to its generation fleet took place in May 2015 when its Korangi plant saw the addition of another Combined Cycle unit. This added another 27 MW to the existing 220 MW that the power plant was generating. Before that, in April 2012, KE’s newly constructed prime power station called Bin Qasim Power Station No. II started to generate 560 additional megawatts when it was converted to Combined Cycle technology. Overall, 1037 MWs had been added to KE’s installed power generation capacity, from January 2009 to May 2015, by construction of new power plants, improvement of existing fleet efficiency by 21.7 per cent through the measures stated above in addition to the replacement of old machines with highly efficient machines, timely and digital annual maintenance and overhaul of Bin Qasim Power Station I’s old units and by optimum dispatch of electricity. Reliability of the system has been improved by reducing unit tripping by 33% and by 31% reduction in the loss of un-served energy. KE’s 180 MW GE – Jenbacher Gas Engines – Project has been awarded “Best Fast Track Project (Silver Award)” and “Best Plant in the Region” title by Asian Power Magazine.

Also, 768 MVA have been added to KE’s transmission capacity through construction of 12 new grid stations bringing the total number of Grid Stations to 64, and installation of 16 new transformers at existing grid stations. A total of 63 kilometre new transmission lines have been laid down enhancing the network from 1186 to 1249.32 kilometers, while 124 kilometer extra high tensions lines have been rehabilitated. With addition of 18 new circuits to the network the total number of circuits has come to 118. With that, transmission losses have been reduced from 4.19% in 2008 to 1.40% in 2015.

 

[Hakikat ve Hikmet]

Companies are there to be bought and sold and bought, and the cycle continues..

 

[xyxmt]

I don't understand what you are saying. You shouldn't have any of these issues if you had privatized these companies before. A free market federal government just owns the institutions, like the Law and Order, Immigration, Justice, Social Security, Health and Human Services body (not the hospitals). Everything else is and should be privatized like it is in the US or the UK. At that point, the government, for public welfare, can provide subsidies but doesn't put its nose in running the business. The Civilian businesses do that and ensure top notch quality, R&D, products and services, etc are in place. That also takes care of the employees as you go from a government to a commercial employment structure.

there is corruption doesn't matter private or public, welcome to Pakistan.
if there is public dealing there is corruption, there is complete setup of corruption mafia in K-Electric, over billing then taking bribes to fix it, illegal connections, Meter fixing, you name it.

 

[JOEY TRIBIANI]

Will it effect consumer?

 

[Max Pain]

Will it effect consumer?

it may improve the service since shanghai electric has also unveiled the plan to invest in KE as well

 

[RoadRunner401]

That is only for strategic buying spree on which Chinese companies are going on which is not a bad thing at all. You are mistaking common buying with strategic projects buying. National infrastructure security is first thing which should be protected at all costs I am not going further as it's not productive discussion bother I have time for this. Thank you and good day. Bye

In Pakistan(IPP independent power producers) and around the world power producing plants are owned by different nationality investors, our experience with privatizing k-electric has been a complete success, its gone form being money pit to tax paying entity

They have added more generation capacity plus updated transmission lines bringing it back from almost certain death to investors darling last I checked Government of Pakistan was still Part owner not sure if they still are or not