(CTN News) – Several companies have expressed their intention to acquire major stakes in and control of Shell Pakistan Limited (SPL), including Prax Overseas Holdings Limited (Prax), a UK-based company.
This development was shared by AKD Securities Limited, a brokerage house that was appointed as the manager of the offer, in a notice to the Pakistan Stock Exchange (PSX), which was published on Monday afternoon.
According to the notice, AKD Securities Limited has been appointed as the manager for the offer made by Prax Overseas Holdings Limited in accordance with regulation 6(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, which states that.
“We would like to announce on behalf of the acquirer that we are pleased to submit a Public Announcement of Intention for the acquisition of up to 77.4296 percent of the issued and paid-up share capital and control of Shell Pakistan Limited,” it said.
A British multinational and independent global energy conglomerate with its headquarters in London, the Prax Group is a British company that deals in crude oil, petroleum products, and biofuels.
In June of this year, Shell Pakistan Limited announced that its parent company,
Shell Petroleum Company Limited (SPCo), had notified its intention to sell its shareholding in Shell Pakistan Limited (SPL).
In a statement at the time, SPL stated that the development would not impact its current business operations, which will remain unchanged as a result of the development.
While the announcement did not disclose the amount of shareholding SPCo intends to sell – the company had 77.42% stake in SPL as of December 31, 2022 (a little over 165.7 million shares), according to the company’s annual report for that year – it did mention that the oil giant is seeing strong interest from international buyers as the company indicated.
In July, Pakistan Refinery Limited (PRL) and Air Link Communication (AIRLINK) jointly announced their intention to acquire a majority stake in Shell Pakistan Limited and to control it.
Bloomberg reported that Saudi Aramco is exploring the possibility of bidding for Shell Plc’s Pakistani assets, citing sources familiar with the matter. According to the report, this is the first time the oil-rich nation has entered a South Asian country, and it could be its first venture into the region.
Bloomberg reported that Shell will divest businesses that do not generate enough revenue as part of its strategy under Chief Executive Officer Wael Sawan to increase returns to shareholders.
SPL is a subsidiary of Shell Petroleum Company Limited, which is a subsidiary of Royal Dutch Shell Plc, one of the world’s largest energy and petrochemical companies.
As well as petroleum products and compressed natural gas, SPL also blends and markets various types of lubricating oils.