In a major twist to Karachi’s power sector saga, Aljomaih Power Limited (AJP) has denied reports of selling its controlling stake in K-Electric’s parent company, KES Power Limited (KESP), to a Saudi investor dismissing the alleged deal as a “photo opportunity” amid ongoing legal disputes.
The controversy traces back to the fallout of the Abraaj Group’s collapse, which triggered years of litigation over K-Electric’s ownership. In 2022, AsiaPak Investments, led by businessman Shaheryar Chishty, claimed control over KESP by acquiring IGCF SPV 21 Limited (SPV 21) a move fiercely contested by co-shareholders Aljomaih Power and Denham Investments for allegedly violating the Shareholders’ Agreement (SHA).
The Current Dispute
Reports recently surfaced that a majority stake in KESP, which holds 66.4% of K-Electric, had been sold to a Saudi group. However, Aljomaih swiftly rejected the claim through a letter to the Pakistan Stock Exchange (PSX), clarifying:
“The board is not aware of any transaction for the sale of shares in KESP.”
The company further alleged that the announcement was “intended to influence public opinion in Pakistan” and to project “a semblance of respectability through apparent affiliation with Saudi officials.”
AJP stressed that Shaheryar Chishty “does not own any shares in KESP and therefore cannot sell any shares.” It also cited that under the SHA, no change of control can occur without the consent of all shareholders, adding that even SPV 21’s director, Casey McDonald, lacks the authority to transfer shares.
Legal and Market Implications
The shareholder battle has now reached the Grand Court of the Cayman Islands, which on July 31, 2025, ruled that there was a “serious issue to be tried” regarding whether SPV 21 violated the SHA by allowing Chishty to assume control.
Industry insiders warn the prolonged conflict could continue to paralyze K-Electric’s long-awaited foreign investment plans, including a multibillion-dollar Chinese takeover proposal that has been on hold for years.
For Karachi’s citizens and investors, the renewed feud means further uncertainty over the city’s only power utility a company vital to Pakistan’s largest metropolitan economy.