WAFI Energy LLC, a prominent fuel station enterprise in Saudi Arabia, has expressed its intention to acquire 77.42% shares and take over control of Shell Pakistan Limited (SHEL), as confirmed by a notice from Shell Pakistan to the Pakistan Stock Exchange (PSX) on Tuesday.
The notice highlighted WAFI Energy LLC’s active pursuit of acquiring 165,700,304 voting shares of the target company, surpassing the thresholds specified under Section 111 of the Act.
WAFI Energy LLC, known for its rapid expansion within the retail gas station network and serving as the exclusive licensee of the Shell Retail Network in Saudi Arabia, has appointed brokerage house Arif Habib Limited (AHL) as the manager for its acquisition offer. AHL subsequently submitted the public announcement of its intention to acquire a significant stake in Shell Pakistan, the notice revealed.
Established in 2012, WAFI Energy operates with an authorized and paid-up capital of 3 million Saudi Riyal, signifying its robust financial standing and capacity for strategic acquisitions.
Earlier this year, Shell Pakistan Limited announced that its parent company, Shell Petroleum Company Limited (SPCo), had communicated its plan to divest its shareholding in the Pakistani entity. The announcement underscored that the intended sale would not impact the ongoing business operations of Shell Pakistan Limited, which would continue unaffected.
While the exact extent of the shareholding to be divested by SPCo was not initially disclosed, the annual report for the preceding year indicated SPCo’s ownership of a 77.42% stake in SHEL, corresponding to slightly over 165.7 million shares.
Notably, the divestment process has garnered substantial attention from international buyers, as evidenced by the expressed interest of Pakistan Refinery Limited (PRL) and Air Link Communication (AIRLINK) to acquire majority control of Shell Pakistan Limited.
Furthermore, reports have surfaced suggesting that Saudi Aramco is exploring the potential acquisition of Shell Plc’s assets in Pakistan, potentially marking the oil-rich nation’s first significant venture into the South Asian market.
The divestment strategy aligns with Shell’s overarching objective to optimize shareholder returns and streamline its portfolio under the leadership of Chief Executive Officer Wael Sawan.
Amid these developments, Prax Overseas Holdings Limited (Prax), a UK-based company, has also communicated its desire to acquire a majority stake and assume control of Shell Pakistan Limited.
As per the most recent financial results, Shell Pakistan Limited recorded a notable profit after tax of Rs6,450 million for the nine months ending on September 30, 2023, as compared to the profit after tax of Rs2,864 million achieved in the corresponding period last year.
