- The sale is expected to be completed by the fourth quarter of 2024.
- The Shell brand will remain in Pakistan through brand licensing agreements.
- WAFI Energy is a rapidly growing retail gas station network.
Shell Petroleum Company Limited, a subsidiary of Shell Plc (Shell), agreed to sell its 77.42% majority stake in Shell Pakistan Limited (SPL) to Saudi Arabia-based Wafi Energy LLC, an official statement issued by the company on Wednesday said. Is.
“The sale is part of Shell’s strategy to high-grade its mobility network and was first announced at Capital Markets Day in June 2023,” the statement said.
Subject to regulatory approval, the sale is expected to be completed by the fourth quarter of 2024.
Upon completion, the Shell brand will remain in Pakistan through brand licensing agreements and customers will continue to have access to Shell’s premium fuels and lubricants portfolio, it said.
“SPL is committed to delivering safe, reliable operations.”
WAFI Energy LLC, one of Saudi Arabia’s leading fuel station companies, is a fast-growing retail gas station network 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), notified its intention to sell its stake in the Pakistani unit in June this year.
According to the annual report for that year, SPCO held 77.42% stake in Shell Pakistan as of December 31, 2022.
Shell Pakistan said at the time that the disinvestment plan would have no impact on its existing business operations, which would continue as usual. The company also said it is seeing strong interest from international buyers.
Shell Pakistan is one of Pakistan’s leading oil marketing companies with a network of over 800 retail outlets across the country. The company reported a profit after tax of Rs 6,450 million for the nine months ended September 30, 2023, compared to Rs 2,864 million in the same period last year.