Pakistan Refinery, Air Link look to buy Shell Pakistan

Pakistan Refinery Ltd (PRL) and Air Link Communication Ltd said on Monday they want to buy majority shareholding and control of Shell Pakistan Ltd, which is the third-largest oil marketing company (OMC) with a share of roughly eight per cent in volumetric sales. The two acquirers are initially eyeing the 77.42pc stake that the foreign sponsor of Shell Pakistan put on sale in June as part of “simplifying” its global portfolio. In line with the prevailing regulations for takeovers, the second leg of the acquisition will consist of a public offer for up to 50pc of the remaining shareholding in Shell Pakistan that’s controlled by the general public, public-sector companies, banks and mutual funds. As such, the two acquirers will be bound to extend a public offer for 11.29pc shareholding in the target company after successfully striking a deal with its current sponsor at an equal or higher share price. At the going market rate of Rs115.05, the value of the foreign sponsor’s entire shareholding in the OMC is around Rs19 billion. The regulatory filing by Next Capital, which is the manager to the offer, didn’t mention the respective shareholding that the two acquirers are eyeing in the OMC. PRL is one of the five refineries operating in the country while Air Link Communication is a publicly listed distributor, manufacturer and retailer of smartphones. Pakistan State Oil Company Ltd (PSO), which holds more than half of the market share among all OMCs, also owns 63.5pc shareholding in PRL.