K-Electric (KE) (Urdu: کے الیکٹرک), formerly known as Karachi Electric Supply Company or Karachi Electric Supply Corporation Limited, is a Pakistani utility company based in Karachi.
Privatised in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
History
In 1913, the Karachi Electric Supply Company (KESC) was formed to meet the power needs of a small port town called Karachi, then a small fishing village and port town, today one of the largest cities of the world.
In 1952, The Government of Pakistan nationalised KESC in order to facilitate the rapid increase in power demand following a surge in the population of Karachi.
In 1999, Pakistan Army assumed control of the KESC.[2] During the 2002-03 fiscal year, a major restructuring was undertaken, which included swapping Rs83 billion worth of debt for equity.[2] Additionally, KESC reduced its capital by Rs57 billion to address its significant accumulated losses.[2]
In September 2003, the Privatization Commission of Pakistan initiated the sale of a 73 percent stake in Karachi Electric Supply Company (KESC), inviting expressions of interest from potential buyers.[2] After a year of rigorous due diligence by three pre-qualified bidders, a pre-bid conference was held on October 7, 2004, with the final bidding occurring on February 4, 2005.[2] Kanooz won the bid with an offer of Rs1.65 per share, totaling Rs20.24 billion, but failed to deposit the bid amount by the March 7 deadline despite receiving extensions.[2] After unsuccessful attempts to secure payment, including a personal visit by the Commission's secretary to Kanooz's headquarters in Saudi Arabia, in 2005, Kanooz finally acquired with the majority shareholding of 73 percent.[2][3]
