Securities and Exchange Commission (SECP) has reportedly sought explanation from Karachi Electric (KE) on purported deal of sale of shares of KES to Sheryar Chishiti, who owns M/s Daewoo in Pakistan.
Background interaction with senior officials in Power Division, SECP and KE indicate that they are not aware of the deal of KES stakes through British court, but strong rumours have already been circulating in the market.
Last month, Attorney General Office wrote a letter to Power Division that KE management has sought a few weeks’ time for definitive comments on the draft of proposed Arbitration Agreement (AA) with the Federal Government, hinting at some internal changes in the management.
According to a communication of Ahmad Irfan Aslam, Head, International Dispute Unit, Attorney General Office, a meeting was held at the Energy Division on August 3, 2022 concerning several issues related to settlement of disputes between K-Electric and different federal and provincial governmental agencies wherein he was instructed to liaise with KE to finalize arbitration.
He has maintained that in this regard his office has been in touch with Executives at KE, adding that it has been learnt from publicly available sources that KE is undergoing corporate restructuring and requires 4 to 6 weeks for its internal management change to be effected.
He further noted that KE shall be able take a definitive position only after the process of corporate restructuring is concluded.
When contacted a senior official of Power Division stated that the Power Division is totally unaware of any deal between KES Power and Sheryar Chishti, adding that if media reports are true, the deal will be between two parties, which is why such information has not been shared with the government which has 26 per cent stakes in KE.
“Since, Abraaj Group is liquidated, that’s why some investors are offering their stakes to another party,” the official added.
The top management of KE, sources said, is aware of this development but not of the entire deal; if KE management accepts that it is aware of the deal, it would have to bring it to the notice of Pakistan Stock Exchange, being a listed company.
Recently, Bilal Azhar Kayani, Coordinator to PM on Energy and Economy told this scribe that KE is also going through an internal shareholding restructuring process; however, the government does not see that as an impediment in finding a solution to these long-standing issues.