K-Electric sold to Shanghai Power for Rs180 billion

[Rizwan Alam]

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.

20%

 

[I S I]

Huh? Where is "the cheap buy"? They spent 16 billion and sold it for 180 billion......what did you miss? That's a 10 time more profit than the initial purchase price....

Just a typical butthurt Indian.

 

[RoadRunner401]

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.

I perfectly understand what you are saying, but when this was privatized, it was costing the government millions and from taxpayer/government point of view sale made sense

 

[xyxmt]

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.

corrupt people working in those state run companies dont need outside help to throw mud, they do a much better job themselves

 

[Rasengan]

And the source of this "information" is?

http://tribune.com.pk/story/1255625...ctric-unveils-9bn-investment-plan-k-electric/

 

[newb3e]

I have made my point in my earlier posts. It is upto you to read and understand.
India is no insecure vis-a-vis china when the time is right, India will reply in the language chinese understand and behave.
Unlike china India will deal transparently and every thing will be in public domain.

Ahh i feel serene just by reading you saintly comments imagine how ill feel after india become super power! There will be so much peace and serenity and yes transparency!

Thumbs up for super power india!

 

[Shotgunner51]

Before writing gibberish nonsense at least research your information properly. Karachi Electric was owned by a foreign company called Abraaj Capital who have now sold it to another company called Shanghai Electric.



I think you should remain quite...clearly you have no idea what you are talking about. People in Karachi will see the difference in the future since Shanghai Electric will pump in a further $9 billion in investment. If India wants to compete with China then seriously educate yourself in finance.


@Shotgunner51 @AndrewJin

Yes I read about this deal from finance media here in Shanghai, since Shanghai Electric is a listco (code 600021) so they have to make disclosures (on Dec 6 they made another disclosure that one of many regulators - Pakistan Antitrust Committee - has approved). They have already signed S&P Agreement with Abraaj Capital who holds 66.4% of K-Electric, while the other two minority shareholders - IFC (World Bank) and ADB - may choose to exercise their tag along rights to sell. Two tranche payment: a fixed lump sum in cash in 1st tranche, and a ratchet in 2nd tranche. Now awaiting complete regulatory approval in China and Pakistan.

http://sc.stock.cnfol.com/jysgg/20161206/23940840.shtml​

It's perfectly normal for Abraaj Capital (and IFC, ADB, if they exercise tag along rights) to exit since they are purely (at least in name) financial institutions. And it's also normal for Shanghai Electric to do outbound M&A, especially when assets match their primary business, and located in OBOR/CPEC.

I will update a semi-sticky thread about China M&A once this deal gets green lights from regulatory authorities. China investment in Pakistan are mostly greenfield (build new assets), this rare case of M&A (buy exisiting assets) will an interesting read.

https://defence.pk/threads/china-global-m-a-push-2005-nowadays.389578/page-10​

 

[RoadRunner401]

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.

L O L, most of the Europe plus North American power plants plus distribution is privatized, Chinese just like Japaneses before them are buying up industry all over the world including United states and Canada

 

[RISING SUN]

L O L, most of the Europe plus North American power plants plus distribution is privatized, Chinese just like Japaneses before them are buying up industry all over the world including United states and Canada

If you got the impression that I am against any Chinese takeover, you are wrong buddy. What I have stated is that unless and until there is some strategic benefits, nobody sells their infrastructure to foreign countries as it can compromise your national security in time of crisis. Hope you get my point.

 

[The Eagle]

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.

 

[RoadRunner401]

If you got the impression that I am against any Chinese takeover, you are wrong buddy. What I have stated is that unless and until there is some strategic benefits, nobody sells their infrastructure to foreign countries as it can compromise your national security in time of crisis. Hope you get my point.

No, I am not wrong that is exactly what you said (what happening is that most of Groups in Pakistan are selling their projects to Chinese groups. It's like mass takeover) Your words not mine, my response left your fear mongering unsuccessful , so you are doing 360 turn


Chinese buying up power plant in Pakistan Bad, but the same Chinese building nuclear plants in India good

India is indicating that a major shift may be in store for its relations with China; a national think tank chaired by PM Narendra Modi has prioritized strategic dialogue between the countries, and the world’s two most populous countries are set to discuss the construction of nuclear plants.

Read more: https://sputniknews.com/asia/201609271045750068-china-india-nuclear-power/

 

[DJ_Viper]

corrupt people working in those state run companies dont need outside help to throw mud, they do a much better job themselves

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.

 

[somebozo]

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

Also privatization of Pak Post, Railways, PIA...these are all corruption dens eating away the national budget with subsidies which is financial rape of rich people for giving free lunch to undeserving..there is a reason why the rich feels entitled to corruption and tax theft..given the Pakistani economic cycle..it is only reasonable that every rich person is entitled to stashing wealth overseas and evading as much taxes he can...

 

[RISING SUN]

No, I am not wrong that is exactly what you said (what happening is that most of Groups in Pakistan are selling their projects to Chinese groups. It's like mass takeover) Your words not mine, my response left your fear mongering unsuccessful , so you are doing 360 turn


Chinese buying up power plant in Pakistan Bad, but the same Chinese building nuclear plants in India good

India is indicating that a major shift may be in store for its relations with China; a national think tank chaired by PM Narendra Modi has prioritized strategic dialogue between the countries, and the world’s two most populous countries are set to discuss the construction of nuclear plants.

Read more: https://sputniknews.com/asia/201609271045750068-china-india-nuclear-power/

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 disscussion bother I have time for this. Thank you and good day. Bye

 

[somebozo]

No, I am not wrong that is exactly what you said (what happening is that most of Groups in Pakistan are selling their projects to Chinese groups. It's like mass takeover) Your words not mine, my response left your fear mongering unsuccessful , so you are doing 360 turn


Chinese buying up power plant in Pakistan Bad, but the same Chinese building nuclear plants in India good

India is indicating that a major shift may be in store for its relations with China; a national think tank chaired by PM Narendra Modi has prioritized strategic dialogue between the countries, and the world’s two most populous countries are set to discuss the construction of nuclear plants.

Read more: https://sputniknews.com/asia/201609271045750068-china-india-nuclear-power/

What happened with the nuclear deal with US??