Saudi Arabia’s Wafi Energy has officially expressed intent to acquire 77.42 percent shares of Shell Pakistan Limited (PSX: SHEL), manager to the offer Arif Habib Limited informed the Pakistan Stock Exchange on Tuesday.
“On behalf of the Acquirer, we are pleased to submit Public Announcement of Intention to acquire up to 77.42% shares of Shell Pakistan Limited (the “Target Company”) by WAFI Energy LLC,” the stock filing stated.
The public announcement of intention to acquire voting shares/control of Shell Pakistan Limited is subject to obtaining the requisite regulatory approvals, including clearance of fit and proper criteria from any regulatory authority, if applicable. The PAI may be withdrawn if requisite approvals are not granted by the concerned regulatory authority(ies), said WAFI Energy LLC in a brief note.
| Intended acquisition through | Number of shares | Percentage |
| Agreement(s) | 165,700,304 shares | 77.42% |
| Public offer | 24,162,179 shares | 11.29% |
Besides WAFI Energy, UK-based Prax Overseas Holdings Limited earlier in October submitted a similar PAI to buy 77.42 percent of the issued and paid-up share capital and control of SHEL.
Earlier in June, Shell Petroleum Company Limited (SPCo) revealed its intention to sell its stake in SHEL. In a meeting held on June 14, 2023, SPCo notified its intent to sell its shareholding (77% of local operations) in its Pakistani business.
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.
At the time of filing, SHEL’s scrip at the bourse was Rs. 164.6, up 5.11 percent or Rs. 8 with a turnover of 3,617,303 shares on Tuesday.
