LONDON: K-Electric (KE) has confirmed to the Pakistan Stock Exchange (PSX) that a controlling stake in the utility company has been acquired by Sage Venture Group Limited, a British Virgin Islands-registered private equity firm. A company of purpose.
The disclosure by KE comes after PSX asked the utility company to clarify a report that said a majority of the power provider’s controlling stake was being sold to Cayman Islands courts.
PSX asked KE to “immediately disclose to the Shares and Exchange Commission of Pakistan (SECP) any information that may affect the market value of its shares.” May “change from time to time.”
Although KE reacted to the notice on Tuesday by saying that it was “not informed of any details regarding the possible transaction”, the situation seems to have changed and PSX A statement has been issued which largely confirms the facts stated earlier.
In addition to the disclosure made by K-Electric Limited (K-Electric) on 18 October 2022, K-Electric is now informed that IGCF General Partner Limited (IGCF GP), has completed its transition as Fund Manager. are taken Infrastructure and Growth Capital Fund L.P. (the Fund), being the owner of the Fund’s assets, in particular, the controlling interests in IGCF GP and certain limited partnership interests in the Fund acquired by Sage Venture Group Limited, a British Virgin Islands registered is a special purpose company wholly owned by AsiaPak Investments Limited. The fund’s indirect non-controlling shareholding in K Electric however remains unchanged,” the utility provider said in the document.
The document added: “The fund is a Cayman Islands registered private investment fund managed by IGCF GP with a number of institutional investors and holds a number of assets, including an indirect non-controlling shareholding in K-Electric. Further, for clarification, the Fund has no controlling interest in K-Electric and no controlling position on the K-Electric Board of Directors.
“K-Electric has also been informed that KES Power Limited, the direct majority shareholder of K-Electric, has decided to make certain changes in its nominated directors on the K-Electric board.”
JEE News has also learned that Justice Siegel in the Cayman Courts has approved the sale of some assets of Deloitte’s Abraaj Investment Management which are related to KE. After doing
However, the document released to the PSX added: “The fund has no controlling interest in K-Electric and no controlling position on the K-Electric board of directors.
“K-Electric has also been informed that KES Power Limited, the direct majority shareholder of K-Electric, has decided to make certain changes in its nominated directors on the K-Electric board.”
If the now-defunct Abraaj had a controlling interest in KES Power and appointed most of the directors at KE, then whoever stepped into their effective shoes would also have control over KE.
JEE News had earlier revealed that the sale of a major controlling stake in KE to KES Power, based out of Pakistan, appeared to be in development, awaiting approval from the Cayman Islands court, but the Pakistan government was not aware of this agreement. Due to confidentiality and the shares were being acquired by a recently incorporated entity formed in an offshore tax haven called Sage Ventures Limited.
Further information available to this reporter indicates that Mark Skelton played a key role in the entire process.
Skelton did not respond to questions but KE sources said he was apparently a representative of Alvarez and Marsal (A&M) as administrator of the Infrastructure and Growth Capital Fund (IGCF). He is also chairman of both KES Power in the Cayman Islands, which owns a controlling stake in KE, and recently became chairman of KE itself, a listed national strategic asset of Pakistan.
Highly-reliable investor sources have shown documents to JEE News which show that Skelton first wrote to IGCF investors on July 4, 2022, who invested in IGCF 15 years ago and that he was patiently withdrawing his capital. Awaiting his return. The letter was sent to only a select few investors, and stated that “IGCF General Partner Limited (IGCF GP) has received a notice from Sage Ventures Limited (SAGE) to acquire them. intends to submit a proposal(s). at least 50% of the interests of the limited partnership”.
He added: “Given IGCF’s history and its unique circumstances IGCF views the GP proposal as potentially attractive to LPs seeking immediate liquidity.”
In the letter, it also confirmed that “Sage has entered into an agreement with Abraaj Investment Management Limited (in official liquidation) to acquire the assets of AIML and interests relating to IGCF, in which it holds a majority stake.” , IGCF GP (GP) also includes a controlling stake. Interest) which is a condition for completing the transaction.
This proves that Deloitte was also part of the transaction as they are the official liquidators of AIML, the source said.
In the addendum to this letter, Skelton highlighted political, monetary and economic developments in Pakistan in a very unfavorable light as an attempt to influence the recipient of the letter to accept Sage’s offer. Think.
