Staff Report
ISLAMABAD: Pakistan Refinery Limited (PRL) and Air Link Communication Limited have formally expressed their intention to acquire a substantial 77.42 percent stake in Shell Pakistan Limited (SPL). The companies have communicated their interest to the General Manager of the Pakistan Stock Exchange, adhering to the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares & Takeovers) Regulations, 2017.
As per the disclosure, PRL and Air Link Communication Ltd are planning to acquire a total of 165,700,304 shares, representing 77.42% ownership of Shell Pakistan Ltd. PRL, a subsidiary of Pakistan State Oil Company Limited, is a prominent refinery engaged in the production and sale of petroleum products. Air Link Communication, on the other hand, is a well-established player in the telecom industry, specializing in the distribution, manufacturing, and retailing of smartphones.
According to sources, PRL and Airlink Communication have submitted non-binding bid with SPL to acquire its majority stakes. If this joint venture (PRL & Airlink Communication Ltd) wins the bid then it is expected that the deal will worth more than Rs 25 billion, sources added.
This development comes as PRL, under the leadership of Zahid Mir, has been making significant progress and diversifying its business ventures. The company recently formed a strategic partnership with Oil and Gas Development Company Limited (OGDCL) to explore collaboration opportunities and foster mutual growth within Pakistan’s energy sector. The memorandum of understanding (MoU) between the two entities aims to establish a robust cooperative relationship in the energy industry.
The potential acquisition of a majority stake in Shell Pakistan Ltd by PRL and Air Link Communication Ltd holds considerable implications for both the energy and telecom sectors in Pakistan. It is anticipated to bring together the synergies and expertise of both companies, paving the way for improved performance and growth in their respective industries. The transaction will undergo a formal process in line with regulatory requirements, ensuring transparency and adherence to applicable laws.
In June 2023, Shell Pakistan, a 75-year-old Dutch oil marketing company, had announced its intention to exit the country without citing any specific reasons. In a notification to the Pakistan Stock Exchange (PSX), Shell Pakistan stated that its immediate parent company, Shell Petroleum Company Limited (SPCo), intended to divest its shareholding in Shell Pakistan Limited (SPL). The sale is subject to a targeted sales process, regulatory approvals, and the execution of binding documentation.
The acquisition proposal by PRL and Air Link Communication marks an important development in the evolving landscape of Pakistan’s business sector. The outcome of this potential transaction will be closely monitored by industry stakeholders and investors as it could reshape the dynamics of the energy and telecom markets in the country.
