IGCF SPV 21 Limited aims for direct stake in K-Electric

July 13, 2023 (MLN): IGCF SPV 21 Limited, the majority shareholder of KES Power Limited, has expressed its intention to acquire a direct stake in K-Electric Limited (KE), the company's filing on PSX revealed today. 

This move signifies IGCF SPV 21 Limited's desire to increase its control and influence over KE, a prominent integrated power company in Pakistan.

On July 7, 2023, IGCF SPV 21 Limited ("SPV21") filed a petition in the Grand Court of the Cayman Islands for a Just & Equitable Winding Up of KES Power Limited ("KESP"). KESP is a Cayman domiciled non-trading entity and acts as a holding company for 66.4% of K-Electric Limited ("KE") which is its sole asset.

SPV21 is the largest shareholder in KESP, owning 53.8% of KESP SPV21 is ultimately owned by the Infrastructure and Growth Capital Fund LP. ("IGCF") which was previously managed by the now-defunct Abraaj Group. IGCF is currently managed by its General Partner on behalf of its limited partners.

Since October 2022, the general partner of IGCF has been owned by Sage Venture Group Limited ("SVGL"), a special purpose company of AsiaPak Investments Limited ("AsiaPak").

The ultimate beneficial owner of both SVGL and AsiaPak is Mr. Shaberyar Chishty, a Pakistani citizen.

SPV21 invested in KESP as part of a 2009 rescue effort to turn around KE after the 2005 privatization had failed to produce positive results. It is through an investment of fresh capital into KE that SPV21 came to be the largest shareholder in KESP.

Investment funds provided by IGCF investors enabled a substantial positive turnaround of KE's affairs. Since the Abraaj bankruptcy in 2019, we are pained to note that KE has taken a turn for the worse, with KE's affairs not producing positive results for Karachi's consumers, KE shareholders, business partners, or lenders.

Since October 2022, the minority shareholders of KESP (who collectively own 46.2% of KESP as compared to SPV21's 53.8% shareholding) have denied us our KESP rights and have sought to frustrate us at KFSP.

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