KARACHI: A reported multi-million-dollar deal to sell a controlling stake in K-Electric’s parent company to a Saudi investor has been publicly denied by a major shareholder, reigniting a bitter, years-long corporate war for control of Karachi’s sole power provider.
The dispute erupted after reports claimed a majority stake in KES Power Limited (KESP)—which holds 66.40% of K-Electric (PSX: KEL)—had been sold to a Saudi investor. In a swift and unusual public rebuttal, K-Electric submitted a clarification to the Pakistan Stock Exchange containing a letter from the director of its shareholder, Al-Jomaih Power Limited (AJP), which stated the board was “not aware of any transaction for the sale of shares in KESP”.
It concluded the media announcement was “likely little more than a photo opportunity intended to influence public opinion in Pakistan.” Al-Jomaih went as far as saying that “by generating extensive coverage” the announcement was meant to “assume a semblance of respectability in official circles through apparent affiliation with Saudi officials.”
The letter went further, casting doubt on the very possibility of the sale by asserting that businessman Shaheryar Chishty, linked to the deal, “does not own any shares in KESP and so he cannot sell any shares”.
Background
At the heart of the denial is a foundational claim: AJP asserts that businessman Shaheryar Chishty, who has been engaged in a protracted legal battle for control, “does not own any shares in KESP and so he cannot sell any shares.”
This latest clash is a new front in a protracted battle for control that began after the collapse of the Abraaj Group. As extensively documented by Profit, the core of the conflict is a violation of the Shareholders’ Agreement (SHA) governing KESP, the company holding a more than 66% share in K-Electric. The agreement was designed to ensure stability by requiring consent from all partners for any change of control.
Problems however arose when Mr. Chishty’s AsiaPak Investments acquired a 53.8% stake in KESP in 2022 by taking over the fund, IGCF SPV 21 Limited (SPV 21), from Abraaj’s liquidators. This move was immediately contested by the other shareholders, AJP and Denham Investments, who alleged it breached the SHA.
As also mentioned in the letter to PSX, AJP holds that “the sole director of SPV 21 is Casey McDonald. Accordingly, the only person that can legally sell the shares in SPV 21 is Mr. McDonald” , however since “the SHA prohibits Casey McDonald and SPV 21 from permitting or taking any action which would result in a change of control of SPV 21 itself”, nor can the shares be transferred to Chishty or, in turn, the Saudis.
The shareholder war has since moved to the Grand Court of the Cayman Islands. AJP’s letter highlights a significant legal development, noting that the court ruled on July 31, 2025, that there was a “serious issue to be tried” regarding whether SPV 21 breached the SHA by permitting Mr. Chishty to assume control.
This ongoing litigation has been one of the primary obstacle to K-Electric’s progress, stalling a much-needed multibillion-dollar takeover and investment plan from China that has been in limbo for years.
For Karachi’s citizens and investors, the renewed public feud signals more uncertainty. It casts a shadow over any potential resolution for the utility, which is critical to the city’s functioning and a major player on the Pakistan Stock Exchange. With one shareholder publicly denying another’s deal and legal battles raging abroad, the path forward for K-Electric remains as opaque and contested as ever.
