KARACHI: KE Holdings Limited (KEH), the largest indirect shareholder of K-Electric (KE), has issued a strongly worded letter to the company’s CEO Moonis Alvi and the Board of Directors, expressing deep concerns over the conduct of KE’s senior management and urging immediate steps for a full board reconstitution.
In the letter addressed to KE’s leadership and shared with regulatory bodies, KEH—holding an indirect 35.7% stake through its majority shareholding in KES Power Limited (KESP)—accused the power utility’s senior management of leaking sensitive information to the media, misreporting matters related to recent board meetings, and undertaking actions that are damaging the company’s performance and credibility.
KEH stated that KE’s senior leadership has “lost the confidence and trust” of key stakeholders, including the Government of Pakistan and the National Electric Power Regulatory Authority (NEPRA). The letter cites multiple reasons for this breakdown, including weak strategic direction, poor operational and financial results, ineffective communication, ill-advised legal strategies and “overly aggressive lobbying and PR campaigns.”
According to KEH, the management’s failure to maintain constructive engagement with regulatory bodies and effectively utilise existing tariff appellate forums has led to significant destruction of shareholder value.
The letter further criticises the prolonged disruption caused by minority shareholders—Al Jomaih Power Limited and Denham Investment Ltd—who together hold only 30% indirect shareholding. KEH claims that these minority shareholders have “held the KE board hostage” since October 2022 by securing ex parte injunctive relief from the Sindh High Court that prevented board appointments. The injunction, it notes, has since been deemed improperly obtained by the Cayman Court of Appeal for violating the shareholders’ agreement governing KESP.
KEH emphasised the urgent need for completing the KE Board, whose term expired on July 29, 2025, and called for fresh elections in line with law and contractual rights.
The letter asserts that filling senior management positions does not violate the contentious Sindh High Court order and accuses minority shareholders of using “spurious legal actions” to obstruct necessary reforms.
The shareholder added that KE cannot be “held ransom by a minority shareholder group and rogue management acting mainly out of self-preservation,” noting that the company’s deteriorating performance has made it increasingly dependent on heavy tariff subsidies nearly two decades after privatization.
KEH urged all other shareholders to demand immediate reconstitution of the board and called on KE to appeal to the Securities and Exchange Commission of Pakistan (SECP) and courts to allow fresh elections—adding that KE’s management has “wilfully” failed to act on prior board instructions in this regard.
Copies of the letter have also been forwarded to SECP and the Pakistan Stock Exchange (PSX).
