IGCF SPV 21 Limited, the largest shareholder of KES Power Limited, has made a significant announcement regarding its intention to acquire a direct holding in K-Electric Limited (KE). The company informed the Pakistan Stock Exchange about this development on Thursday.
Petition for Winding Up Filed by IGCF SPV21 Limited
In a strongly worded statement, IGCF SPV21 Limited has revealed that it has filed a petition in the Grand Court of the Cayman Islands. The purpose of this petition is to seek a “just and equitable winding up” of K-Electric’s holding company.
Background and Disputes
SPV21, as the largest shareholder in KESP, owns 53.8 percent of KESP. The Infrastructure and Growth Capital Fund L.P. (IGCF) ultimately owns SPV21 and was previously managed by the now-defunct Abraaj Group. Sage Venture Group Limited (SVGL), owned by AsiaPak Investments Limited, has been the general partner of IGCF since October 2022.
SPV21’s investment in KESP dates back to 2009 when it played a crucial role in rescuing KE from the aftermath of failed privatization in 2005. However, disputes have arisen since October 2022, with minority shareholders of KESP (holding 46.2 percent) denying SPV21 its rights and impeding the smooth functioning of KESP.
Seeking Direct Ownership of KE
In light of the challenges faced with KESP and its minority shareholders, IGCF has taken the stance that KESP no longer serves its intended purpose. Consequently, IGCF has petitioned the Cayman Court for the winding up of KESP. This action aims to allow SPV21 to hold shares in KE directly, bypassing the need for a holding company like KESP.
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