SPCo and WAFI Energy Ink Deal to Acquire Shell Pakistan Limited

Shell Petroleum Company Limited (SPCo) and WAFI Energy LLC, a prominent Saudi Arabian fuel station company, have officially entered into an agreement to acquire SPCo's entire ownership in Shell Pakistan Limited (SHEL). This significant development was announced by Shell Pakistan Limited, a subsidiary of SPCo, in a notice submitted to the Pakistan Stock Exchange.

The transaction encompasses the sale of 165,700,304 shares, representing a substantial 77.42% of SHEL's total shares. However, the successful completion of this deal is contingent upon several prerequisites. These include the issuance of a public offer by WAFI Energy, securing essential approvals, notably clearance from the Competition Commission of Pakistan (CCP), and meeting various other closing requirements.

Notably, Shell Pakistan Limited had previously received a concrete expression of interest from WAFI Energy to acquire a majority of the voting shares in SHEL. WAFI Energy LLC is renowned for its rapidly expanding network of retail gas stations and holds the exclusive license for Shell Retail Network (gas stations) in Saudi Arabia.

Change in ownership is not expected to have any adverse impact on Shell Pakistan's ongoing business operations.

This development follows Shell Pakistan's announcement in June regarding the intent of its parent company, SPCo, to divest its ownership in the Pakistani entity. It is important to emphasize that this change in ownership is not expected to have any adverse impact on Shell Pakistan's ongoing business operations.

Furthermore, it's worth noting that other notable entities, including Pakistan Refinery Limited (PRL), Air Link Communication (AIRLINK), and Prax Overseas Holdings Limited (Prax), have also expressed their interest in acquiring a significant stake in Shell Pakistan Limited.

According to SHEL's latest financial report, the company posted a commendable profit after tax of Rs6,450 million for the nine months ending on September 30, 2023, marking a substantial increase compared to the Rs2,864 million in profit after tax for the corresponding period in the previous year.