Shanghai Electric to buy Pakistani power company

State-backed Shanghai Electric Power Co agreed to pay buyout firm Abraaj Group $1.77 billion for a controlling shareholding in Pakistani utility K-Electric, gaining access to 2.5 million customers in the south Asian country's most populous city.

Abraaj is selling its 66.4 percent stake in K-Electric through its KES Power unit, according to a statement posted on its website, after first investing in the company in 2009. K-Electric was formerly known as Karachi Electric Supply Co and has exclusive power distribution rights for the city and adjoining areas.

The deal is among the biggest acquisitions in Pakistan in a decade. Shanghai Electric Power emerged as the lead bidder last month, people with knowledge of the matter said, after the stake had also drawn interest from Chinese clean-energy group Golden Concord Holdings Ltd, French utility Engie SA and at least one investment fund, the people said.