PACRA Maintains Entity Ratings of K-Electric Limited on Rating Watch with Developing Status
The company is filing application with SECP for direction to hold AGM for 2017 on receipt of NEPRA decision on the reconsideration request of Ministry of Energy, Government of Pakistan. Accordingly, the date for holding AGM will be determined. Hence receipt/ publication of accounts for FY 2017 are depending on convening the AGM.
Given extension in holding of AGM for FY17 and subsequent delay in quarterly accounts, PACRA maintains the assigned Rating Watch (Developing Status) to the rating of KE. PACRA would continue to monitor the developments and will update its rating opinions accordingly.
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. At end-Nov17, KES Power Limited (KESP) held 66.4% share in KE, while Government of Pakistan owned 24.4%. KES Power majority is owned (53.8%) by Abraaj Capital (Private Equity Group) with the balance held by a group of investors (Al Jomaih, Saudi Arabia and NIG, Kuwait). KES Power has lately entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of KE against a consideration of US$ 1.77bln. The transaction will close once customary closing conditions and requisite regulatory approvals are obtained.
KE has a thirteen-member board that comprises nine representatives of KES Power, three GoP members and one independent member. The CEO - Mr. Tayyab Tareen is supported by an experienced team.