KARACHI – Shell Petroleum Company Limited has signed an agreement to sell its 77.42% majority shares in Shell Pakistan Limited (SPL) to Wafi Energy LLC, a Saudi firm.
The sale is part of Shell’s strategy to high-grade its mobility network and was first announced on Capital Markets Day in June 2023, it said in a statement.
“The sale is expected to complete by Q4 2024, subject to regulatory approvals. Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuel and lubricant portfolio,” read the official statement.
“Shell Petroleum Company Limited (SPCo) has entered into a share purchase agreement dated 31 October, 2023 with Wafi Enregy LLC (Wafi Energy), for the sale of SPCo’s entire shareholding in SPL, comprising 165,700,304 shares and representing 77.42 percent of the issued share capital of SPL,” SPCo. said in a letter dated Oct. 31.
SPL is listed on the Pakistan Stock Exchange (PSX:SHEL), and its total business footprint in Pakistan includes more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26% shareholding in Pak-Arab Pipeline Company Limited.
Wafi Energy LLC, a wholly-owned affiliate of Asyad Holding Group, is a leading fuel retailer in the Kingdom of Saudi Arabia and last year signed a license agreement to operate mobility sites under the Shell brand in the kingdom.
The Saudi firm has roped in Arif Habib Limited in Pakistan to manage its acquisition offer.
