An important part of K-Electric has acquire by Sage Venture Group Limited, which is registered in the British Virgin Islands.
Karachi Electric (KE) contacted PSE regarding the possible sale of a large part of Karachi Electric (KE) to the Cayman Islands Courts. On 12 October, reporter learned of “KE’s controlling stake sale nears completion abroad, unknown to Pakistan” in this paper.
The PSE requested that the KE immediately inform the SECP of any information that may affect the price of its shares.
In response to the above notice, KE said it hadn’t given any specifics. The situation appears to have changed and a statement from the PSE confirms the facts.
Annoucement of K-Electric
K-Electric Limited (K-Electric) has announced that IGCF General Partner Limited (IGCF GP) has been appointed fund manager.
As the owner of the Fund’s assets, (Fund) is the owner of the Fund’s assets. AsiaPak Investments Limited acquired controlling interests in IGCF GP and certain limited partnership interests in the Fund through Sage Venture Group Limited.
While K-Electric’s indirect non-controlling shareholding has remained unchanged, the Fund continues to hold a 15% indirect stake.
IGCF GP manages the Fund with numerous institutional investors and holds multiple assets, including an indirect non-controlling interest in K-Electric. To be clear, the Fund has no controlling interest in K-Electric, and no position on the K-Electric Board.
A change has made to the nominee directors on the K-Electric Board by KES Power Limited, the direct majority shareholder of K-Electric.
Cayman Courts
Just after this story highlighted in Pakistan on October 13, the Cayman Courts sanctioned Deloitte’s sale of Abraaj’s KE assets.
So, K-Electric Board of Directors does not have control over the Fund, according to the document released to the PSE. Also, KES Power Limited, the company’s direct majority shareholder, has changed its nominee directors on the K-Electric Board. If Abraaj owned KES Power and appointed the majority of its directors, whoever succeeds them will also control the firm.
There has speculation that KES Power is looking to sell a large part of KE outside Pakistan, awaiting approval from a Cayman Islands court. However, Pakistan’s government was not aware of the deal due to secrecy. Sage Ventures Limited was acquiring the stake in an offshore tax haven. Further information available to the reporter indicates that Mark Skelton played an important role.
KES Power
According to sources in KE, Skelton was apparently the administrator of Alvarez and Marsal (A&M). The KE itself, a listed national strategic asset of Pakistan, is also own by KES Power in Cayman Islands, its controlling shareholder.
Credible investor sources report that IGCF investors who invested 15 years ago are still waiting for their capital to return. A proposal (the Proposal) was sent to certain investors by Sage Venture Limited (Sage) to acquire at least 50 percent of the Limited Partnership interests.
IGCFGP is a condition of Sage’s acquisition of AIML’s assets and interests related to IGCF, including its controlling stake in IGCFGP.
Hence, Deloitte must have also involve in the transaction since they are the official liquidators of AIML. It appears that Mark Skelton sought to influence the recipients of that letter by highlighting Pakistan’s political, currency, and economic developments in an unfavourable light in an appendix to the letter.
