The Grand Court of the Cayman Islands has maintained its order that directed the shareholders of K-Electric Limited (PSX: KEL) to end their dispute in the Cayman Islands or England rather than in Pakistan.
The stay order was issued pending a further hearing on October 10, 2023, KEL informed the Pakistan Stock Exchange on Thursday.
The court order has held that any dispute between the Original Shareholders and SPV 21 should be determined by a court in the Cayman Islands or England rather than the High Court of Sindh, Karachi.
The Company has been further informed that there is no change to the status of the proceedings commenced in the High Court of Sindh at Karachi, Pakistan, on 21 October 2022 or to the ad-interim order of that same court dated 21 October 2022 until at least 10 October 2023 (i.e., the date of the next hearing in the Cayman Islands).
As per the filing, the Company has also been informed that the proceedings before the Grand Court of the Cayman Islands were only concerned with the jurisdiction in which the underlying dispute should be heard. They did not address the merits of the claims between the Original Shareholders and SPV 21.
This comes in continuation of KEL’s earlier stock filing which first indicated to the company about the Grand Court’s decision on the case. In the order issued by the Grand Court of Cayman Islands, the Other Shareholders have been directed to terminate or discontinue the proceedings commenced in the High Court of Sindh at Karachi, Pakistan on 21 October 2022, and to forthwith take steps to cause the interim order of the High Court of Sindh dated 21 October 2022 to be set aside.
SPV21 is the largest shareholder in KES Power Limited (KESP), a Cayman-domiciled non-trading entity that acts as a holding company for 66.4 percent of K-Electric Limited. SPV21 is ultimately owned by the Infrastructure and Growth Capital Fund L.P. (“IGCF”) which was previously managed by the now-defunct Abraaj Group. IGCF is currently managed by its General Partner on behalf of its limited partners.
