Shell Pakistan Limited Announces Major Share Sale to Riyadh’s Wafi Energy

Shell Pakistan Limited (SHEL) is undergoing a significant change in ownership as Shell Petroleum Company Limited (SPCo) has entered into a Share Purchase Agreement (SPA) to sell its entire shareholding in SHEL to Riyadh-based Wafi Energy LLC (WAFI Energy). This deal, which comprises 77.42% of SHEL’s issued share capital, was officially announced on October 31, 2023. However, the transaction’s completion depends on several conditions, including the issuance of a public offer by WAFI Energy and approval from the Competition Commission of Pakistan, among other closing formalities.

This development follows Wafi Energy’s earlier expression of intent to acquire SPCo’s assets in Pakistan, indicating the strategic interest in the Pakistani energy sector by Saudi Arabia’s WAFI Energy.

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As a result of this news, SHEL’s share price experienced a decline, dropping by 5.15% to reach Rs. 155.48 per share, with a total turnover of 3,935,449 shares on the stock exchange on the day of the announcement.

This major share sale will likely have a significant impact on the energy landscape in Pakistan. It signals a shift in ownership and control of one of the key players in the country’s energy sector. The finalization of the deal, contingent on regulatory approvals and other formalities, will be closely watched by investors and stakeholders in the energy market, as it has the potential to reshape the competitive dynamics and strategic direction of the industry in Pakistan.

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