Shanghai Electric Power Co, one of the biggest players in China’s energy sector, is seeking a majority stake in one of the subsidiaries of Kuwait’s National Industries Group (NI Group) Holding, it has been confirmed.

The Chinese firm intends to acquire 66.4 percent voting shares of K-Electric (KE), a power distributor in Pakistan, NI Group Holding said in a bourse filing with the Dubai Financial Market (DFM) on Thursday.

The multinational conglomerate said talks about the proposed majority acquisition is still ongoing, and that it will make the necessary disclosure “in case of any material developments”.

“We confirm that Shanghai Electric [is] periodically (6 months) sending their intention to acquire the above-mentioned stake and the transaction is still processing and the negotiation among all parties is still [ongoing],” the company said.

In 2016, NIG reportedly signed a conditional agreement to sell 10.45 percent of its share to Shanghai Electric.

Initially set up as a manufacturer of building materials in Kuwait, NIG now manages multiple businesses, including petrochemicals, oil and gas reserves, real estate, utilities, financial services and infrastructure, among others.

It holds major shares in several regional and international companies, with investments in power generation and telecommunications reaching as far as Singapore, United Kingdom, Sri Lanka and Latin America.

(Writing by Cleofe Maceda; editing by Seban Scaria)


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