Renowned companies, Pakistan Refinery Limited (PRL) and Air Link Communication are keen to procure a portion of Shell Pakistan. This move comes after Shell Petroleum Company announces its withdrawal from Pakistan, intending to sell its dominating 77% share in the local subsidiary.
Next Capital Limited officially stated their Public Announcement of Intention on behalf of PRL and Air Link Communication to acquire this 77.42% stake and take control of Shell Pakistan.
The announcement was made through a notice directed to the Pakistan Stocks Exchange (PSX), which handles the offer on behalf of the interested companies.
The Rationale Behind the Proposed Acquisition
Muzzaffar Hayat Piracha, the CEO of Air Link, has collaborated with PRL for this potential acquisition. He mentioned that further details regarding the shareholding distribution between Air Link and PRL would be unveiled in due course.
Piracha outlined the rationale behind their interest in Shell Pakistan, emphasizing that expanding Air Link’s operations into the petroleum sector seems a logical step for the company, given its proficiency as a manufacturer, distributor, and retailer of mobile devices.
PRL, on the other hand, is one of the five refineries in Pakistan and a division of the Pakistan State Oil Company Limited. A response is awaited from PRL regarding their perspective on this potential acquisition.
The company’s economic difficulties primarily drove Shell Pakistan to withdraw in 2022. This includes the fluctuations in currency rates, the devaluation of the Pakistani rupee, and a growing pile of accounts receivable. These challenges reflect the ongoing financial crisis and stagnation plaguing the country’s economy.
