Cayman Court order merely documents its previous judgment: KESP minority shareholder

LONDON: As the Grand Court of the Cayman Islands granted partial relief to Infrastructure and Growth Capital Fund SPV21 (IGCF), minority shareholder of KES Power Limited (KESP), Al Jomaih Power, said Saturday that court order merely documented its previous judgment.

Justice Segal Judge of the Grand Court of Cayman Islands made the order in Al-Jomaih Power Limited and Denham Investment Ltd’s case against Infrastructure and Growth Capital Fund SPV21 (IGCF).

According to Al Jomaih Power Limited and Denham Investment Ltd spokesperson, “In effect, the Cayman court has only partially granted the relief sought by SPV 21 recognising that there are important public policy matters which the Pakistan courts and authorities must be allowed to determine and are bound to take very seriously.

“K-Electric is an important asset and Al Jomaih and Denham remain committed to the people of Karachi and the success of K-Electric. In recognition of that point, the Cayman Court permits the Pakistan proceedings to continue with the Government of Pakistan.”

“We are grateful to the Cayman Courts for recognising that this is a sensitive matter for the people and Government of Pakistan with implications and national security,” the spokesperson added.

The spokesperson further said that nothing in the August 16 order can be implemented till a second hearing takes place, which will be sometime in early October.

In its order, the Grand Court of the Cayman Islands allowed the Pakistan proceedings to continue with the Government of Pakistan through the Privatization Commission and Power Division Secretaries, National Electric Power Regulatory Authority (NEPRA) and Securities and Exchange Commission Of Pakistan (SECP) in the battle for the takeover of Karachi Electric (KE).

In October 2022, the Sindh High Court (SHC) issued a stay order preventing any change in KE’s board of directors because of a lawsuit filed by the shareholders in KESP. There are three vacant slots on the board of directors.

The order asks the two shareholders to terminate or otherwise discontinue the proceedings commenced by them in the SHC 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, however, also rules “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 the other Shareholders only apply for and pursue relief that requires those defendants to the Pakistan Proceedings to exercise their duties, rights or powers in relation to K-Electric Limited or KES Power Limited in a manner that does not prevent the Applicant from exercising, or interfere with the exercise (whether before or after the date of this order) by the Applicant of, its rights under the SHA as a KES Power Limited shareholder.”

In layman terms, this means that further court hearings are required to determine and for that another hearing is scheduled for October.