WAFI Energy LLC, one of Saudi Arabia’s leading fuel station companies, is pursuing 77.42% ownership and control of Shell Pakistan Limited (SHEL).
However, Shell Pakistan informed the Pakistan Stock Exchange (PSX) of the development on Tuesday.
Shell Pakistan Notice to PSX Regarding WAFI Energy
“It is hereby informed that Shell Pakistan Limited (SHEL) has received firm intention from WAFI Energy LLC to acquire control of 165,700,304 (up to 77.42%) voting shares of the target company, beyond the thresholds prescribed under Section 111 of the Act,” read the notice.
Moreover, WAFI Energy LLC, according to the notice, is a rapidly expanding retail gas station network and the sole licensee of Shell Retail Network (gas stations) in Saudi Arabia.
Arif Habib Limited (AHL) Appointed Manager
Separately, brokerage firm Arif Habib Limited (AHL) announced that it has been appointed manager to WAFI Energy’s offer and has submitted the public announcement of intention to acquire up to 77.42% of Shell Pakistan’s shares.
According to the notice, WAFI Energy was founded in 2012 with a paid-up capital of 3 million Saudi Riyal.
Furthermore, Shell Pakistan Limited announced in June of this year that its parent company, Shell Petroleum Company Limited (SPCo), had informed it of its intention to sell its shareholding in the Pakistani entity.
Shell Pakistan stated at the time that the development would have no effect on its current business operations, which would continue.
While the announcement at the time did not specify how many shares SPCo intends to sell.
Shell Pakistan Annual Report
According to the annual report for that year, it had a 77.42% stake in SPL as of December 31, 2022 (a little more than 165.7 million shares) – a company statement did convey that the oil giant is “seeing strong interest from international buyers.”
In July, Pakistan Refinery Limited (PRL) and Air Link Communication (AIRLINK) announced their intention to buy a majority stake in and control of Shell Pakistan Limited.
Later, Bloomberg reported, citing people familiar with the matter, that Saudi Aramco is considering a bid for Shell Plc’s assets in Pakistan.
However, the deal could be the oil-rich country’s first foray into South Asia, according to the report.
Other Oil Companies Interest in Shell Pakistan Shares
According to Bloomberg, the divestment plan comes as Shell executes a strategy under Chief Executive Officer Wael Sawan to increase shareholder returns and cut businesses that aren’t profitable enough.
However, Prax Overseas Holdings Limited (Prax), a UK-based company, announced earlier this month its intention to acquire a majority stake and control of Shell Pakistan Limited.
According to SHEL’s most recent financial results, the OMC earned Rs. 6,450 million in profit after tax for the nine months ended September 30, 2023, up from Rs. 2,864 million in the same period last year.
To read our blog on “UK-based oil company want to buy 77% of Shell Pakistan Ltd.,” click here.
