Daily Times

Pakistan Refinery Limited (PRL) and Air Link Communication Limited (Air Link) have announced their withdrawal from the intention to acquire a controlling stake in Shell Pakistan Limited, separately sharing notices with the Pakistan Stock Exchange on Wednesday.

The acquisition, which was first proposed in July 2023, was aimed at acquiring 77.42% of Shell Pakistan Limited’s shares and control.

“However, negotiations with the seller did not progress, leading to the withdrawal of the Public Announcement of Intention (PAI) under the Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017,” the notice stated.

The PAI was submitted by Next Capital Limited, acting as the manager to the offer, on behalf of PRL and Air Link. The announcement was made through a notice to the Pakistan Stock Exchange (PSX) on July 17, 2023.

According to the initial proposal, PRL and Air Link intended to acquire 77.42% of Shell Pakistan Limited’s shares through an agreement and an additional 11.29% through a public offer. This would have amounted to a total potential acquisition of 88.71%.

Shell Pakistan Limited had announced in June 2023 that its parent company, Shell Petroleum Company Limited (SPCo), intended to sell its shareholding in SPL. SPCo had a 77.42% stake in SPL as of December 31, 2022. Despite the intent to sell, Shell Pakistan Limited assured that its current business operations would not be affected.

The decision now marks the end of the acquisition bid for Shell Pakistan Limited by the two companies.

SPL is a subsidiary of Shell Petroleum Company Limited, United Kingdom, which is a subsidiary of Royal Dutch Shell Plc, one of the world’s largest energy and petrochemical companies. The company markets petroleum products and compressed natural gas, and also blends and markets various kinds of lubricating oils.

PRL is one of the five refineries operating in Pakistan, and engaged in the production and sale of petroleum products. It is a subsidiary of Pakistan State Oil Company Limited.

Meanwhile, Air Link Communication is one of the smartphone distributors, manufacturers, and retailers in the country, and has a nationwide network.