The battle for the ownership and ultimate control of K-Electric (KE) is heating up. The latest increase in temperature comes nearly two years after a fateful transaction in the Cayman Islands changed the ownership structure of Pakistan’s oldest vertically integrated electric company forever.
The transaction in question took place in early 2023. The company, once an Abraaj asset, was sold to AsiaPak Investments in a deal that took place in the Cayman Islands far away from Pakistani regulators and stakeholders. AsiaPak is run by Sheheryar Chishty, a former highflying banker who now owns Daewoo in Pakistan and has deep interests in Thar Energy.
Despite two years passing, Mr Chishty and his company have not been allowed to take the reins of the KE management. Behind this delay is a tussle between the new regime and some of the company’s minority shareholders, in particular influential Saudi investors that have been involved in KE and have had a claim in the company since long before Mr Chishty arrived on the scene. In a recent letter these Saudi investors, under the banner of Al-Jomaih, have claimed that Mr Chishty and his investment firm are in breach of securities regulations for not properly disclosing information. The letter was written to KE to express concerns that KE has not made necessary disclosures about changing ownership patterns. They also question the extent of Mr Chishty’s shareholding and his posturing as the company’s real owner.
The letter was written in a bid to keep Mr Chishty away from management control of KE, and goes so far as to call his actions “unlawful” and “in breach of fiduciary duties owed to limited partners”. However, KE has since made disclosures based on the letter by Al-Jomaih, which was sent on the 25th of January 2025. In this disclosure, they have also attached older correspondence from Mr Chishty which clears up his declaration of a change in Ultimate Beneficial Owner (UBO) of KE — which is an important legal term.
How does all of this work? As a company, KE is governed by a complex ownership structure that has only gotten more convoluted over time. As things stand, the battle between Mr Chishty and Al-Jomaih is reaching crescendo. Even as court cases continue to be fought abroad, the question remains: what will eventually happen to KE? The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
