WAFI Energy LLC, a prominent company in the fuel station sector in Saudi Arabia, has expressed its intent to acquire 77.42% ownership in Shell Pakistan Limited (PSX: SHEL).
Shell Pakistan, in a stock filing at the Pakistan Stock Exchange (PSX) on Tuesday, said: “It is hereby informed that Shell Pakistan Limited (SHEL) has received a 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.”
WAFI Energy is a rapidly expanding network of retail gas stations and holds the exclusive license for the Shell Retail Network (gas stations) in Saudi Arabia, as per the notice.
Brokerage house Arif Habib Limited (AHL) has been appointed as the manager for WAFI Energy’s acquisition offer. AHL has submitted a public announcement expressing Saudi firm’s intention to acquire up to 77.42% of Shell Pakistan’s shares.
Read More: Ignoring the details: Going after the wrong Shell
WAFI Energy was established in 2012 with an authorized and paid-up capital of 3 million Saudi Riyal, as stated in the AHL notice.
Earlier on June 14, Shell Petroleum (Shell plc), one of the world’s preeminent oil and gas conglomerates, had declared its intention to relinquish its stake in Shell Pakistan, its subsidiary in the nation. At that time, Shell Pakistan emphasized that the transition would not affect its ongoing business operations, which would continue as usual.
Although the June announcement did not specify the exact shareholding to be divested, the annual report for the year ending December 31, 2022, indicated that Shell plc held a 77.42% stake in its Pakistan subsidiary, equivalent to slightly over 165.7 million shares.
In July, Pakistan Refinery Limited (PRL) and Air Link Communication issued separate notifications to the PSX, declaring their intention to acquire control of Shell Pakistan. The two companies had set their sights on jointly acquiring a staggering 77.42% – 165.7 million shares – through an agreement, and an additional 11.29% – which translates into 24.16 million shares – through a public offer.
Reports also emerged that Saudi Aramco was exploring a potential bid for Shell Plc’s Pakistan business. The Bloomberg reported that Shell’s divestment strategy aligns with Chief Executive Officer Wael Sawan’s efforts to enhance returns to shareholders and shed businesses that were not meeting profit expectations.
In a recent development, Prax Overseas Holdings Limited (Prax), a UK-based company, has expressed its intention to acquire a controlling stake in Shell Pakistan Limited.
This would be such a scam. A company with 3 million Saudi Riyal of paid cup (<1million dollar) intends to buy Shell Pakistan.. haha. And reporter is saying that they have Shell fuel distribution rights in Saudia. Even one Pump would cost more than 5 million USD in Saudi Arab.
WHO reports such crap.
They have signed the franchise agreement a year before. More importantly no online presence and information regarding corporate or organisational structure of “WAFI” Hahaha