Pakistan Refinery Limited (PSX: PRL) and Air Link Communication Limited (PSX: AIRLINK) want to acquire Shell Pakistan Limited (PSX: SHEL), Next Capital Limited (manager to the offer) informed the Pakistan Stock Exchange on Monday.
Next Capital Limited on Monday submitted a Public Announcement of Intention by PRL and AIRLINK to acquire 77.42% shares and control of Shell Pakistan Limited under the Securities Act, 2015, and the Listed Companies Regulations, 2017.
The offer, if accepted, would allow the acquirers to purchase 77.42 percent or 165,700,304 shares via agreement(s) while another 11.29 percent or 24,162,179 shares through Public Offer.
This comes after Shell Petroleum Company Limited (SPCo) in June told PSX that it intends to sell its stake in SHEL.
Shell started considering exiting its home energy retail businesses in the United Kingdom, the Netherlands, and Germany in January due to difficult market conditions caused by EU authorities who have been seeking to protect customers from rising energy bills. This most likely pushed Shell to cut costs in other stations, with Pakistan being one of the many reported channels that the company decided to quit.
The British firm now intends to keep producing oil until 2030 while increasing its natural gas business in order to maintain its position as the world’s top liquefied natural gas (LNG) player. Meanwhile, it may scale back operations in more countries to stay strategically competitive in the sector.
The offer of PRL and AIRLINK indicates the possibility of Shell being bought by local players.
