Taj Gasoline (Private) Limited has decided not to proceed with the acquisition of Hascol Petroleum Limited (PSX: HASCOL), manager to the offer AKD Securities Limited informed the Pakistan Stock Exchange on Tuesday.
According to the stock filing, the manager referenced the Public Announcement of Intention (PAI) dated June 16, 2023, extended by notice dated December 13, 2023, to expire on January 31, 2024, to acquire at least 41 percent of the Issued Paid-Up Share Capital and control of HASCOL.
“In accordance with Regulation 21 of the Regulations read with the Act, we hereby give notice that the Acquirer has decided not to proceed with the acquisition. Consequently, the Acquirer is withdrawing the PAI in respect of the Transaction,” it added.
This comes just a month after Taj Gasoline in December extended the initial period to buy controlling shares in Hascol.
Notably, Hascol first allowed Taj Gasoline to carry out due diligence in June 2023 when it expressed the intention to acquire (by way of subscription of shares) at least 41 percent of the issued and paid-up share capital of the oil marketing company.
For quite some time now, Hascol has been negotiating with all of its lenders to restructure its whole Rs. 54 billion debt and has devised a restructuring program that will include the settlement of the full debt. The withdrawal of PAI on behalf of Taj Gasoline certainly dents any progress made thus far.
