Deal is important for Shell's methodology to high-grade its portability organization, understands proclamation
Wednesday, November 01, 2023
The sale is expected to close in the fourth quarter of 2024.
The Shell brand will remain in Pakistan through licensing agreements.
WAFI Energy is a rapidly growing network of retail gas stations.
Shell Petroleum Company Limited, a subsidiary of Shell plc (Shell), has agreed to sell its 77.42% majority stake in Shell Pakistan Limited (SPL) to Saudi Arabia-based Wafi Energy LLC, the company said in an official statement on Wednesday.
"The sale is part of Shell's strategy to enhance its mobile network and was first announced at Capital Markets Day in June 2023," the statement added.
The sale is expected to be completed by the fourth quarter of 2024, subject to regulatory approval.
Upon completion, the Shell brand will remain in Pakistan through licensing agreements and customers will continue to have access to Shell's portfolio of premium fuels and lubricants.
"SPL remains committed to providing safe and reliable operations."
WAFI Energy LLC, one of the leading gas station companies in Saudi Arabia, is a rapidly growing network of retail gas stations and the sole licensee of the Shell Retail Network in Saudi Arabia.
The company was established in 2012 with an authorized and paid-up capital of 3 million Saudi Riyals.
The development comes after Shell Pakistan's parent company, Shell Petroleum Company Limited (SPCo), announced its intention to sell its stake in the Pakistani entity in June this year.
According to the annual report for the year, SPCo had a 77.42% stake in Shell Pakistan as on 31 December 2022.
Shell Pakistan said at the time that the sale plan would have no impact on its current business operations, which would continue as usual. The company also said it is seeing strong interest from international buyers.
Shell Pakistan is one of the leading oil marketing companies in Pakistan with a network of more than 800 retail outlets across the country. The company reported a profit after tax of Rs 6,450 crore for the nine months ended September 30, 2023, compared to Rs 2,864 crore in the same period last year.
