KARACHI: The Karachi electric utility says it has not received any confirmation from its majority shareholder on reports suggesting that one of its indirect shareholders has signed a memorandum of understanding (MoU) with a Saudi investor for the sale of his interest in KES Power Ltd.

In a stock filing on Thursday, K-Electric (KE) shared a letter from Shan A. Ashary, a director of KES Power Ltd and representative of Al-Jomaih Power Ltd — one of KE’s indirect shareholders.

Responding to media reports that Sheharyar Chishty had signed an MoU to sell a majority stake in KES Power, Mr Ashary said he was not aware of any such transaction. He added that no information had been provided to the KESP board or shareholders regarding any sale.

Ashary expressed concern that the announcement appeared designed to influence public perception and gain credibility by associating the reported deal with Saudi officials. “Media releases of this type are not in the interest of KESP or any KE shareholder,” he said, especially as neither KE nor KESP had been officially informed.

He dismissed the development as a “photo opportunity”, claiming that Mr Chishty does not own any shares in KESP and, therefore, cannot sell what he does not possess.

Ashary noted that ongoing litigation in the Grand Court of the Cayman Islands — where KESP and its shareholders are incorporated — has determined there is a serious issue to be tried regarding whether Mr Chishty’s attempts to acquire control of KESP violate an existing shareholder agreement.

He clarified that the shareholders of KESP are Al-Jomaih Power Ltd (AJP), Denham Investments Ltd, and IGCF SPV 21 Ltd. The sole director of SPV 21 is Casey McDonald, who, under the terms of the shareholders’ agreement, is prohibited from taking any action that would lead to a change of control in SPV 21.

Published in Dawn, October 17th, 2025