Dubai – Mubasher: Dubai-based Abraaj Group is on the verge of reaching an agreement with the Pakistan government to sell its 66% stake in Karachi-based K-Electric to a Chinese group.
The ailing private equity firm received an offer two years ago from Shanghai Electric Power to buy K-Electric for $1.8 billion, bringing Abraaj’s earnings to $450 million, people familiar with the issue told the Financial Times (FT).
Abraaj Group, once one of the developing world’s influential investors, is currently working on fulfilling the deal after it had been held up by regulatory approvals.
The bid will prove the biggest source of recovery funds for Dubai-based Abraaj’s creditors and will also provide some money to investors.
“There is more momentum than ever before,” the FT said, citing the sources.
In June 2018, Cayman Islands court has approved a request submitted by Abraaj Group for a provisional liquidation of its business, allowing for a court-supervised restructuring and the protection of stakeholders’ rights.
Abraaj Group was accused of mishandling a $1 billion healthcare fund and audits discovered that the UAE-based company commingled investor funds with its own money in the healthcare fund.
