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Both sides exchange allegations over control claims following reported MoU between Sheharyar Chishty and Saudi Prince Mansour bin Mohammed Al Saud.
BeNewz Report
KARACHI: The ownership dispute surrounding K-Electric (KE) has intensified as Saudi-based Al Jomaih Power Limited and Pakistan’s AsiaPak Group traded serious accusations over alleged misinformation and attempts to influence control of the utility company. The controversy surfaced days after reports of a Memorandum of Understanding (MoU) signing between Saudi Minister Prince Mansour bin Mohammed Al Saud and AsiaPak Chairman Sheharyar Chishty in Karachi.
Following media coverage of the event, K-Electric’s share price reportedly dropped sharply, sparking uncertainty among investors.
In a formal letter to KE’s Chief Risk Officer and Company Secretary, Rizwan Pesnani, KE Director and Al Jomaih representative Shan A. Ashary clarified that neither he nor the company had received any official information regarding any MoU or share sale agreement. “There has been no formal communication to the Board of KES Power Limited (KESP) or its shareholders regarding any such transaction,” he stated, calling the media reports “baseless and misleading.”
Ashary added that the news appeared to be “an attempt to shape public perception in Pakistan by associating the event with Saudi officials and creating an illusion of legitimacy.” He described the alleged MoU as “nothing more than a photo opportunity.”
Ashary further emphasized that Sheharyar Chishty owns no shares in KES Power Limited (KESP) — the holding company that controls KE — and therefore cannot legally sell or transfer any ownership. He added that Chishty’s reported attempts to gain control of SPV 21, an investment vehicle associated with KESP, were in breach of the Shareholders Agreement (SHA).
In his letter, Ashary outlined four key points:
- Sheharyar Chishty holds no shares in KESP and has no authority to sell them.
- KESP’s shareholders are Al Jomaih Power Limited, Denham Investments Limited, and IGCF SPV 21 Limited (SPV 21), whose sole director is Casey McDonald.
- The SHA prohibits McDonald and SPV 21 from any transfer of ownership or control without consent from Al Jomaih and Denham.
- In violation of these terms, Chishty has attempted to assume control of SPV 21 without authorization — a matter currently under legal proceedings in the Grand Court of the Cayman Islands.
Ashary referred to a judgment dated 31 July 2025, in which Justice Asif of the Cayman Islands Court, in the case Al Jomaih Power Limited v IGCF SPV 21 Ltd (FSD2025-0037), ruled that there was “a serious issue to be tried” regarding whether SPV 21 had breached the SHA by allowing Chishty to exert control.
He concluded that, “Unless and until there is mutual agreement between Al Jomaih Power Limited and Denham, or compliance with the SHA, there can be no change in ownership or control of KESP.”
However, responding to the allegations, AsiaPak Group Chairman Sheharyar Chishty accused Al Jomaih of “spreading lies” and misleading stakeholders. Speaking to Business Recorder on Thursday, he said, “For the past three years, the people of Karachi, the federal and provincial governments — and we ourselves — have all become accustomed to Al Jomaih’s falsehoods.”
Chishty questioned Ashary’s position, claiming, “He owns only 9% of KE but wants to control the entire company.” He alleged that Al Jomaih Group had long obstructed operational decisions of K-Electric “under political pressure,” worsening Karachi’s chronic power crisis.
So far, K-Electric’s Board and regulatory bodies have not issued any formal statement on the dispute. However, market analysts say the escalating tensions have shaken investor confidence, leading to a noticeable decline in KE’s stock performance.
Experts believe the ownership battle — which has persisted for years between foreign investors, including Saudi and Kuwaiti entities — has now reached a critical stage. The legal complexities and public sparring, they say, could impact not just the company’s governance but also Karachi’s energy supply chain.
Government sources confirmed that the Ministry of Energy and federal authorities are closely monitoring the situation to prevent the corporate dispute from escalating into a broader financial or operational crisis in Pakistan’s power sector.
Analysts suggest that unless a mediated resolution is reached, the continued uncertainty may deter foreign investment in Pakistan’s utilities sector, where K-Electric remains one of the largest private power distributors serving over 3.5 million consumers in Karachi and adjoining areas.
