Pakistan’s procedures in the KE takeover controversy have been approved by the Cayman Grand Court.

( Web Desk) – The Cayman Islands Grand Court has granted partial relief to Infrastructure and Growth Capital Fund SPV21 (IGCF), but has also allowed the Pakistan Proceedings to continue with the Government of Pakistan via the Privatization Commission and Power Division Secretaries, NEPRA and SECP in the battle for the takeover of Karachi Electric (KE).

Mr Justice Segal, a Grand Court Judge, issued the order in the matter of Al Jomaih Power Limited and Denham Investment Ltd vs Infrastructure and Growth Capital Fund SPV21 (IGCF).

Because to a case brought by KESP shareholders, the Sindh High Court imposed a stay order in October 2022, blocking any change in KE’s board of directors. The board of directors currently has three open seats.

“This order merely documents the Court’s previous judgment,” stated a representative for Al Jomaih Power Limited and Denham Investment Ltd. In fact, the Cayman court only partially granted the requested relief, but SPV 21 recognizes that there are critical public policy issues that Pakistan courts and authorities must be permitted to consider and must take extremely seriously.

K-Electric is a valuable asset, and Al Jomaih and Denham remain dedicated to the people of Karachi and K-Electric’s development. As a result, the Cayman Court allows the Pakistan proceedings to continue with the Government of Pakistan via the Privatization Commission and Power Division Secretaries, NEPRA and SECP.

“We are grateful to the Cayman Courts for recognizing that this is a sensitive matter for the people and Government of Pakistan with implications and national security.” The spokesman said that nothing in the 16th August Order can be implemented till a second hearing takes place, which will be sometime in early October.

The Order asks the two shareholders to terminate or otherwise discontinue the proceedings commenced by them in the High Court of Sindh at Karachi, Pakistan by the Suit for Declaration and Permanent Injunction issued on 21 October 2022 and also orders that the “Other Shareholders” shall not (whether by themselves or their agents) commence or pursue, or procure or assist the commencement or pursuit of, any proceedings in connection with any dispute or disagreement under, arising out of, or relating to the Shareholder Agreement dated 15 October 2008 in any court or tribunal other than in either the Grand Court of the Cayman Islands or an English court.

The Order requests that the two shareholders terminate or otherwise discontinue the proceedings initiated by them in the High Court of Sindh in Karachi, Pakistan by the Suit for Declaration and Permanent Injunction issued on 21 October 2022, and also orders that the “Other Shareholders” shall not commence or pursue, or procure or assist the commencement or pursuit of, any proceedings in connection with any dispute or disagreement under, a contract.

The Order, however, states that “the Other Shareholders may continue the Pakistan Proceedings against (i) the Government of Pakistan through the Secretary, Privatisation Commission, Ministry of Privatisation and Investment (ii) the Government of Pakistan through the Secretary, Ministry of Energy, Power Division (iii) National Electric Power Regulatory Authority and (iv) the Securities and Exchange Commission of Pakistan as defendants to the Pakistan Proceedings if and to the extent that (i) the Government of Pakistan through the Secretary, Privatisation Commission, Ministry of Privat,or obstruct the Applicant’s exercise of its rights under the SHA as a KES Power Limited shareholder (whether before or after the date of this decision).”

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