A minority shareholder has rejected Shell Pakistan’s Limited’s sale to Saudi Arabia’s Wafi Energy Holding Limited and complained to the Securities and Exchange Commission of Pakistan arguing that the share price does not reflect the company’s true value due to the concentration of shares held by a few large investors.
Mian Bilal Arshad, the shareholder, said Shell bypassed higher offers from other investors and disregarded their bids in favor of Wafi Energy, reported Bloomberg.
The minority shareholder called on authorities to explore legal avenues to ensure minority shareholders receive fair value for their shares in the company.
Shell has so far defended the sale and said the agreement was reached after a selective sales process. The company told ProPakistani,
The sale of the majority shareholding in Shell Pakistan Limited is in line with Shell Group’s strategy and Capital Markets Day commitments to high grade its mobility network and is a demonstration of our enhanced focus on performance, discipline, and simplification.
The sales agreement followed a targeted sales process, and after consideration Shell selected Wafi Energy as the right buyer, given Wafi Energy’s strategy to expand in the region and its commitment to building upon Shell Pakistan Limited’s existing legacy.
The sales process is following all regulatory requirements including those of the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange.
Shell’s decision to exit Pakistan came after 75 years of operations in the country. Meanwhile, it has a broader relationship with Wafi Energy, having signed an agreement in 2022 that appointed Wafi as the sole representative of Shell-branded fuel stations in Saudi Arabia.
