SPCo, WAFI Energy execute SPA for acquisition of Shell Pakistan Limited

Shell Petroleum Company Limited (SPCo) and WAFI Energy LLC, a Saudi Arabian fuel stations company, have executed a Share Purchase Agreement (SPA) for the sale of SPCo’s entire shareholding in Shell Pakistan Limited (SHEL).

The development was shared by Shell Pakistan Limited, a subsidiary of SPCo, in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“On 31 October 2023, Shell Petroleum Company Limited (SPCo) informed Shell Pakistan Limited that SPCo and Wafi Energy LLC (WAFI Energy) executed a SPA on 31 October 2023 for the sale of SPCo’s entire shareholding in the company (SHEL), comprising 165,700,304 shares and representing 77.42% of the issued share capital of the company,” read the notice.

The completion of the transaction will now be subject to the issuance of a public offer by WAFI Energy, receipt of requisite approvals including clearance from the Competition Commission of Pakistan (CCP), and the satisfaction of other closing formalities, it added.

On Tuesday, Shell Pakistan Limited, in its notice to the bourse, had informed that it received firm intention from WAFI Energy to acquire control of 165,700,304 (up to 77.42%) voting shares of SHEL.

As per the notice, WAFI Energy LLC is a fast-growing retail gas station network and sole licensee of Shell Retail Network (gas stations) in Saudi Arabia.

Back in June this year, Shell Pakistan Limited announced that its parent company, Shell Petroleum Company Limited (SPCo), had notified its intent to sell its shareholding in the Pakistani entity.

Back then, Shell Pakistan said that the development would have no impact on its current business operations, which will continue.

In July, Pakistan Refinery Limited (PRL) and Air Link Communication also jointly expressed their intention to acquire the majority stake and control of Shell Pakistan Limited.

Later, Bloomberg, citing people familiar with the matter, reported that Saudi Aramco is exploring a potential bid for Shell Plc’s assets in Pakistan.

Last month, Prax Overseas Holdings Limited (Prax), a UK-based company, expressed its intention to acquire a majority stake and control of Shell Pakistan Limited.

As per SHEL’s latest financial results according to a press release, the OMC delivered a profit after tax of Rs6,450 million for the nine months ended September 30, 2023, compared to the profit after tax of Rs2,864 million made in the same period last year.