LONDON: Mark Skelton, chairman of K Electric (KE), has certified that Sheryar Chishti’s indirect beneficial ownership in the company through the Infrastructure and Growth Capital Fund (IGCF) is only 5.1%. . This is a surprising turn of events that contradicts many previous depictions. The fund will become KE’s largest shareholder.
Leaked documents from Alvarez & Marsal, a well-known international consulting firm, show that Chishti is indirectly an LP (limited partner) of IGCF and “indirectly has a 5.1% interest in KE.” It shows.
This document geography newsis signed by Skelton, the current head of KE and chairman of KE’s parent company, Cayman Island-registered KES Power Limited (KESP).
Mr. Skelton also serves on the board of IGCF General Partner Limited, which manages the IGCF Fund. He is also a Managing Director of Alvarez and Marsal Europe LLP.
This document conveying this revelation was signed by KE and KESP Chairman on July 11, 2023 for legal filing. The title of the verified document is “KES Power Limited (IGCF) — an entity in which as of July 11, 2023 he holds an economic interest (indirect) interest of more than 5%”.
There has been a controversy in Pakistani media in recent months claiming that Chishti has become the “majority” owner of KE Limited, with numerous reports suggesting that he holds a significant stake in the company. .
Initial Saudi-Kuwaiti investors Aljomai and the National Institute of Genetics hold more than 30.7% of the power company’s indirect shares, calling Sheryar Chishti’s claim of majority ownership misleading. I completely refused. This idea is now reinforced by certification letters from the Chairman of KE and KESP.
The leaked document, obtained from an anonymous source and containing the signature of KE Chairman Skelton, provides undeniable evidence and raises several questions.
The certification document contains detailed ownership information and structural details that reveal the true extent of IGCF’s involvement in KE. The certification document also reveals that about 30% of IGCF SPV 21, KESP’s third largest shareholder (excluding the Saudi and Kuwaiti groups), is held by Mashreq Bank.
This effectively means that Mashreq Bank holds a 10.5% indirect stake in KE. Comparing this to Chishti’s ownership as a limited partner/investor in IGCF, we find that Chishti’s see-through ownership is only 5.1%, or less than half of Mashreq Bank’s ownership.
Chishti’s economic stake in KE will be obtained by purchasing limited partner interests from various investors in IGCF. Founded in 2008, IGCF initially had more than 80 investors.
Therefore, the hierarchy of indirect ownership in KE starts at the top with the largest portion held by KE’s original investors since its privatization in 2005: the Saudi-Kuwaiti conglomerate (30.7%). Become.
Next in line is Mashreq Bank (10.5%), which took over the stake from the ill-fated Abraaj Group, which is currently in liquidation. The smallest portion of these four groups belongs to Chishti (5.1%) through offshore entities in the British Virgin Islands (BVI).
Skelton did not respond to questions for this article.
The nomination of directors to KE’s board of directors is an ongoing battle between the two major shareholder groups of holding company KES Power.
Chishti-owned IGCF-owned SPV-21 Ltd claims to control 53.8% of the shares in KES Power. All others dispute this claim and argue that such claims are nothing but misrepresentations. The matter is pending in a Cayman Islands court, and the legal battle is likely to drag on for months.