(Yicai) Sept. 17 -- Shanghai Electric Power, a major Chinese power generation company, clarified that terminating the acquisition of a major foreign asset will not have a significant adverse impact on its production, operation, and financial status.

The company will continue to promote balanced growth to achieve healthy and orderly development in the domestic market and make targeted investments in overseas markets, Shanghai Electric said in a statement on Sept. 15, adding that it has integrated capabilities to invest, build, and operate overseas projects thanks to its experience over the past 10 years.

On Sept. 9, Shanghai Electric announced it had terminated the acquisition of an over 66 percent stake in Pakistani energy utility company K-Electric because the seller was unable to meet the preconditions to close the deal, and changes in the Pakistani business environment made the deal no longer in line with the buyer’s internationalization strategy.

Shares of Shanghai Electric [SHA: 600021] closed 3.2 percent down at CNY20.40 (USD2.87) apiece in Shanghai today, after falling 2.8 percent yesterday. The stock plunged by limit on Sept. 10 but rebounded the next day.

Shanghai Electric unveiled in August 2016 that it planned to invest nearly USD1.8 billion, plus an additional USD27 million bonus, to buy a 66 percent stake in K-Electric. The deal was then regarded as a benchmark project for Chinese power generation firms going global.

Established in 1913, K-Electric is the only company in Pakistan with vertically integrated businesses covering power generation, transmission, distribution, and sales. It operates five power plants with a total installed capacity of over 2.2 million kilowatts, accounting for about 10 percent of the country’s total.

Shanghai Electric is firmly committed to its internationalization strategy, which has already achieved good results this year. It is the largest Chinese firm operating in the Japanese energy sector and one of the three largest foreign photovoltaic power generation companies in Hungary.

The Hunutlu Thermal Power Plant, which was co-developed by Shanghai Electric, is the largest direct investment by a Chinese firm in Türkiye.

Shanghai Electric has been actively expanding in overseas clean energy markets in recent years. It has established overseas projects in countries such as Bulgaria, Hungary, Japan, Malta, Serbia, and Turkey, mainly in the wind power, solar power, and natural gas power generation fields.

Editor: Futura Costaglione