The Board of Directors of Hascol Petroleum Limited has allowed Taj Gasoline (Private) Limited, an oil marketing company (OMC), to carry out due diligence of the company.
Taj Gasoline, engaged in the fuel retail business, plans to acquire at least 41% shares of Hascol, the listed company shared in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“It is hereby informed that the company (Hascol) has received (i) a public announcement of intention dated June 14, 2023 by Taj Gasoline (Private) Limited (through its manager to the offer i.e. AKD Securities Limited) to potentially acquire (by way of subscription of shares) at least 41% of the issued and paid up share capital of the Company,” read the notice.
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Hascol said that it has also received a conditional non-binding offer from Taj Gasoline for a potential investment in the company, “by way of subscription of new shares in the company for acquiring at least 41% of the issued shares of the company post-investment”.
Hascol said that the offer is subject to due diligence, price determination and quantum of injection, successful restructuring by Hascol of its liabilities, and negotiation of transaction documents.
“It is clarified that the proposal of the potential investor i.e. Taj Gasoline is to inject new equity into the company and the existing sponsor shareholders are not intended to sell their shareholding in Hascol,” read the notice.
Consequently, Hascol’s board on Friday authorised the management to permit Taj Gasoline to carry out due diligence of the company and its business operations.
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“The board also authorised representatives to, inter alia, facilitate such due diligence, appoint advisors and consultants for the purposes of the arrangement, and enter negotiations with potential investor for the proposed transaction and documents pertaining thereto.
“Upon finalisation of the terms of the potential arrangement by the management, the same shall be presented to the Board of Directors for their consideration and approval,” read the notice.
Hascol has been in negotiation with all its lenders to restructure its entire debt of Rs54 billion and designed a restructuring scheme which will entail the settlement of the entire debt.
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