In a surprising development regarding the ownership of K-Electric (KE), KE Chairman reveals Shehryar Chishti’s only 5.1% indirect ownership via IGCF.
This contradicts previous portrayals by the fund as a majority shareholder in KE.
Leaked documents from Alvarez and Marsal, a renowned consulting firm, reveal that Chishti indirectly holds a 5.1% interest in KE as a Limited Partner (LP) of the IGCF.
Skelton, who serves as KE’s Chairman and Chairman of the parent entity KES Power Limited (KESP), signed this document. He also holds positions in IGCF General Partner Limited and Alvarez and Marsal Europe LLP.
The document, dated July 11, 2023, titled “KES Power Limited (IGCF) — entities holding greater than 5% economic beneficial (indirect) interest in KE as of 11 July 2023,” provides clear evidence of Chishti’s ownership stake in KE.
Chishti had previously claimed to be the majority owner of KE, leading to a media debate. The original Saudi and Kuwaiti investors, Al-Jomaih and NIG, consistently rejected this claim, asserting their 30.7% indirect share in the company. Skelton’s certified document reinforces this stance.
The leaked document also reveals that approximately 30% of IGCF SPV 21’s ownership, the third shareholder in KESP, is held by Mashreq Bank, equivalent to a 10.5% indirect stake in KE. Chishti’s ownership, as a Limited Partner in IGCF, is only 5.1%, less than Mashreq Bank’s stake.
Chishti’s ownership in KE is the result of purchasing Limited Partner interests from various IGCF investors, which originally numbered over eighty.
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The ownership hierarchy in KE starts with the original investors, the Saudi and Kuwaiti conglomerates (30.7%), followed by Mashreq Bank (10.5%), and finally Chishti (5.1%) through his offshore entity in the British Virgin Islands (BVI).
The dispute over director nominations for KE’s board of directors continues between the two major shareholder groups of KES Power, the holding company. Chishti’s IGCF-owned SPV-21 Ltd claims to control 53.8% of KES Power, but this claim is contested by others, leading to ongoing legal proceedings in the Cayman Islands.
Skelton did not respond to questions regarding this matter, leaving the ownership and governance of KE in a state of uncertainty.