Chief Investment Officer of Al-Jomaih and Director at Karachi Electric (KE), Shan Abbas Ashary, has refuted claims made by Infrastructure and Growth Capital Fund (IGCF Fund) regarding its majority ownership of K-Electric. In an interview, Ashary stated that these claims were baseless and incorrect. He highlighted the uncertainty surrounding the ownership of IGCF Fund and its further ownership in IGCF SPV 21 Ltd, citing concealed and non-transparent transactions conducted by Sage in the Cayman Islands.
Ashary emphasized the importance of understanding the implications and necessary permissions required by the Government of Pakistan (GoP) regarding any significant change of ownership of KE, as it is considered a national security matter. He mentioned the example of China’s state-owned Shanghai Electric Power Company’s acquisition of KE, which had checks and balances in place to prevent any unauthorized ownership changes. Ashary stressed that the ongoing legal matter in Pakistan courts does not pertain to KE’s ownership but is solely a jurisdictional issue.
On the other hand, Shehryar Chishti, who claims ownership, asserts that he has followed all legal requirements and everything has been done in accordance with the law. However, Ashary questioned the source of funds for shares acquired through Asia Pak and called for disclosure.
IGCF SPV 21, in a statement, asserted its legal right to appoint its nominees on the KE Board as per the shareholders’ agreement. However, Ashary pointed out that the ruling of the Cayman court has a restricted jurisdiction, and further court dates have been set in the Cayman Islands. He also mentioned that potential owners would require security clearance from the Privatisation Commission of Pakistan.
Ashary provided background information, stating that Al-Jomaih Group and National Industries Group obtained a stake in KE in 2005, and Abraaj joined IGCF SPV 21 in 2008. After Abraaj’s collapse in 2018, liquidators managed IGCF SPV 21’s stake in KE. In 2022, Sage Ventures, owned by Chishti and his spouse, claimed a majority stake through backdoor transactions in the Cayman Islands. The Original Shareholders, the Saudi and Kuwaiti conglomerates, have consistently opposed this claim.
Ashary clarified that IGCF Fund’s stake in IGCF SPV 21 is purely non-voting and does not carry management rights. He also highlighted the complexities surrounding different share classes in the Cayman Islands and the need for legal clarification on ownership.
In conclusion, Ashary urged that IGCF SPV 21 be seated on the KE Board to lead KE’s turnaround, focusing on providing affordable and reliable electricity to Karachi. He emphasized the importance of the government’s approval and security clearance for any significant ownership changes in KE.
More detail via GEO TV here… ( Image via GEO TV )