WEB DESK: Pakistan Refinery Limited (PRL) and Air Link Communication Limited (Air Link) have announced their decision to step back from acquiring a controlling stake in Shell Pakistan Limited, as reported by Business Recorder.
In notices shared separately with the Pakistan Stock Exchange on Wednesday, the companies disclosed their withdrawal from the proposed acquisition, which was first suggested in July 2023.
The reports said that the intended acquisition aimed to secure 77.42 per cent of Shell Pakistan Limited’s shares and control. However, negotiations with the seller did not advance as expected, leading to the withdrawal of the Public Announcement of Intention (PAI) under Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, according to the notice.
Next Capital Limited, acting as the offer’s manager on behalf of PRL and Air Link, had submitted the PAI. The announcement was made via a notice to the Pakistan Stock Exchange (PSX) on July 17, 2023.
Initially, the proposal outlined PRL and Air Link’s intention to acquire 77.42 per cent of Shell Pakistan Limited’s shares through an agreement, with an additional 11.29 per cent through a public offer, totaling a potential acquisition of 88.71 per cent.
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Meanwhile, Shell Pakistan Limited had previously disclosed in June 2023 that its parent company, Shell Petroleum Company Limited (SPCo), planned to divest its shareholding in SPL, where SPCo held a 77.42 per cent stake as of December 31, 2022. Despite this intent to sell, Shell Pakistan Limited assured that its ongoing business operations would remain unaffected.
The decision to withdraw now marks the conclusion of the acquisition bid for Shell Pakistan Limited by PRL and Air Link.
SPL operates as a subsidiary of Shell Petroleum Company Limited, United Kingdom, which in turn is a subsidiary of Royal Dutch Shell Plc, a major global energy and petrochemical conglomerate. The company’s activities include the marketing of petroleum products and compressed natural gas, as well as the blending and marketing of various types of lubricating oils.
PRL is among the five refineries operational in Pakistan, involved in the production and sale of petroleum products, and functions as a subsidiary of Pakistan State Oil Company Limited.
Meanwhile, Air Link Communication stands as one of the leading smartphone distributors, manufacturers, and retailers in Pakistan, boasting a nationwide network.
