CLOV approves acquisition of 40% stake in quick gases

Clover Pakistan Limited has approved the acquisition of a 40% equity stake in Quick Gases (Private) Limited as the listed firm moves to expand into Pakistan’s liquefied petroleum gas (LPG) infrastructure sector.

The development was disclosed in a notice submitted to the Pakistan Stock Exchange on Monday.

According to the filing, CLOV’s Board of Directors authorised management to enter into a Share Purchase Agreement (SPA) with the existing shareholders of Quick Gases for the proposed acquisition.

The company said the transaction would enable Clover Pakistan to obtain management control and participate in the operational, financial and strategic decision making of the investee company.

Quick Gases is engaged in the development of LPG storage, marketing and distribution facilities and has secured the required regulatory approvals, including a construction licence from the Oil and Gas Regulatory Authority.

The project includes LPG storage infrastructure, filling facilities and distribution capability, positioning the company for commercial operations upon completion, the notice stated.

CLOV further informed the bourse that its management had been authorised to complete all necessary regulatory and statutory formalities related to the transaction.

Incorporated in 1986, Clover Pakistan is involved in the sale of consumer durables, food products, chemicals and lubricants, along with the import and trading of gantry equipment, air and oil filters and other car care products.

Separately, Mecom Gas Pvt Ltd had earlier announced it was evaluating an initial public offering on the PSX to raise $20 million for the construction of an LPG storage facility with a planned capacity of 3,000 tons.