After the announcement of a finalized deal between Shell Pakistan Ltd’s parent company and a Saudi Arabian group, local investors have withdrawn their plans to acquire a stake in the company. Pakistan Refinery Ltd (PRL) and Air Link Communication Ltd, two interested local investors, officially communicated their withdrawal to the Pakistan Stock Exchange (PSX), marking the end of their bid for the energy company.
Muzaffar Paracha, CEO of Air Link, explained that this withdrawal is a procedural requirement to inform regulators about investment decisions. He mentioned that Shell Petroleum Company Ltd (SPCo) and Wafi Energy Company LLC, a significant fuel station operator in Saudi Arabia, have concluded a share purchase agreement for SPCo’s entire holdings in Shell Pakistan Ltd.
The transfer of stakes to Wafi Energy is subject to various conditions, including a public offer by the Saudi company on the PSX and obtaining necessary approvals, such as clearance from the Competition Commission of Pakistan (CCP). Shell Pakistan, operating under Royal Dutch Shell Plc, has been a major player in Pakistan’s petrochemical sector. The decision to sell its shareholding was announced in June 2023, with SPCo holding a substantial 77.42% stake in the company as of December 2022.
Story by Kalbe Ali
