Cnergyico Pk Limited, formerly known as Byco Petroleum Limited, is in advanced talks to acquire a controlling stake in Puma Energy Pakistan Pvt. Ltd.
According to Bloomberg, the newfound acquisition is expected to expand Cnergyico’s retail operations and make it the largest private fuel retailer in a country already thriving in record gasoline sales.
Sources familiar with the situation informed Bloomberg that the deal for an approximately 57 percent stake in the company, valued somewhere around Rs. 4 billion ($23 million), could be disclosed within a few days. They also added that the Singapore-based Puma Energy Holdings Pte had sold its investment in the Pakistan operation to joint venture partner Chishti Group last month.
The representatives of Puma Energy and the Chishti Group did not respond to requests for comment on the matter.
Puma Energy Holdings Pte, a failing emerging-market gasoline retailer and storage firm controlled by the trading house Trafigura Group Pte, was previously in talks to sell its infrastructure assets in more than 30 locations. Following a debt-fueled acquisition blitz, Puma Energy Holdings Pte has not posted an annual profit since 2017,
As the details of the proposed deal stand, Cnergyico will get 542 petrol stations as part of the acquisition, which will bring its total to around 1,000. Note that the state-owned Pakistan State Oil (PSO) operates 3,500 retail stations of its own, while Shell operates 766 locations around the country.
In addition, Cnergyico will continue to operate the two brands separately.
