Shell Petroleum Company Limited has executed a share purchase agreement for the sale of SPCo’s entire shareholding in Shell Pakistan Limited to Riyadh-based Wafi Energy, Shell Pakistan Limited (PSX: SHEL) informed the Pakistan Stock Exchange on Wednesday.
“On 31 October 2023, The Shell Petroleum Company Limited (SPCo) informed Shell Pakistan Limited that SPCo and Wafi Energy LLC (WAFI Energy) executed a Share Purchase Agreement (SPA) on 31 October 2023 for the sale of SPCo’s entire shareholding in the Company, comprising 165,700,304 shares and representing 77.42% of the issued share capital of the Company (the Transaction),” the stock filing stated.
“Completion of the Transaction will be subject to the issuance of a public offer by WAFI Energy, receipt of requisite approvals including clearance from the Competition Commission of Pakistan, and the satisfaction of other closing formalities,” it added.
According to a media release, the sale is expected to be completed by Q4 2024, subject to regulatory approvals. Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio.
The sale is part of Shell’s strategy to high-grade its mobility network and was first announced on Capital Markets Day in June 2023.
This comes just a day after Arif Habib Limited informed PSX that Saudi Arabia’s Wafi Energy has officially expressed intent to acquire SPCo’s assets in Pakistan.
At the time of filing, SHEL’s scrip at the bourse was Rs. 155.48, down 5.15 percent or Rs. 8.44 with a turnover of 3,935,449 shares on Wednesday.
