K-Electric Clarifies Reports on Alleged Stake Sale by Indirect Shareholder

October 16, 2025

K-Electric Limited (KEL) has issued a clarification to the Pakistan Stock Exchange (PSX) regarding recent media reports claiming that one of its indirect shareholders has signed an MoU with a Saudi investor for the sale of its stake in KES Power Limited — KEL’s majority shareholder.

The company stated that while confirmation has been sought from KES Power Limited, no official response has been received. However, a letter from a director representing Al-Jomaih Power Limited (an indirect shareholder of KEL) refuted the reports, terming them “factually incorrect.”

According to the letter, Mr. Shaheryar Chishty does not hold any shares in KES Power Limited and therefore cannot sell them. It added that ongoing litigation in the Cayman Islands concerns allegations that efforts to assume control of SPV 21 — a shareholder in KESP — may breach the existing shareholders’ agreement (SHA).

The clarification emphasized that any claim of a share sale or control transfer is unsubstantiated, and no official communication regarding such a transaction has been made to K-Electric or its shareholders.