- Pakistan Refinery Limited and Air Link Communication express interest in acquiring a stake in Shell Pakistan.
- Shell Petroleum Company plans to exit Pakistan by selling its 77% shareholding in the local business.
- The move comes amid economic challenges within Pakistan, impacting Shell Pakistan’s financial performance in 2022.
Pakistan Refinery Limited and Air Link Communication Express Interest in Acquiring Stake in Shell Pakistan
In a recent stock filing, it was revealed that Pakistan Refinery Limited and Air Link Communication have expressed their intention to acquire a stake in Shell Pakistan. The move comes after Shell Petroleum Company announced its exit from Pakistan by selling its 77% shareholding in the local business. This decision was part of Shell’s broader strategy to streamline its global operations, citing economic challenges within Pakistan as one of the reasons for the exit.
Next Capital Limited, acting on behalf of the two companies, submitted a Public Announcement of Intention to the Pakistan Stocks Exchange (PSX), confirming their interest in acquiring 77.42% shares and control of Shell Pakistan Limited.
Details of the joint venture between Pakistan Refinery Limited and Air Link Communication will be disclosed at a later stage, according to Airlink CEO Muzzaffar Hayat Piracha in a statement to Reuters. The move to enter the petroleum business aligns with Airlink’s goal of diversification, as the company is currently involved in smartphone distribution, manufacturing, and retail.
Pakistan Refinery Limited is among the five refineries operating in the country and operates as a subsidiary of Pakistan State Oil Company Limited. As of now, PRL has not provided any immediate comments on the matter.
Shell Pakistan faced financial challenges in 2022, including losses due to exchange rates, devaluation of the Pakistani rupee, and overdue receivables amidst the country’s ongoing financial crisis and economic slowdown.
Published in PakWeb, July 17, 2023.
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