KARACHI: Millat Energy Group, a Dubai-based financial and private equity firm, has expressed its intention to acquire a 76 percent stake in Hascol Petroleum Limited, a major oil marketing company in Pakistan, Hascol said on Monday.
Hascol, which posted a massive loss of Rs13.1 billion in the first nine months of 2023, said it received a non-binding letter of intent from Millat Energy Group, through its investment holding company Millat Global Holdings, to subscribe to its fully diluted share capital.
“On the basis of the non-binding letter of intent received from Millat Energy Group, through its investment holding company, Millat Global Holdings, a DIFC company (potential investor), to acquire, through subscription, 76 percent fully diluted share capital of the company, the management be and is hereby authorized to invite the Potential Investor to undertake due diligence of the company and provide necessary access to company’s VDR,” the company said in a notice to the Pakistan Stock Exchange (PSX).
The potential investor has six weeks from the commencement of due diligence to submit a binding offer, in compliance with the securities and takeover regulations, Hascol added.
The development is “subject to execution of non-disclosure agreement(s), publication of public Notice of Intent to acquire shares of the company in compliance with the provisions of the Securities Act 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations 2020, with a binding offer submission timeline of six weeks from commencement of due diligence by the potential investor.”
Earlier this year, Hascol informed the PSX that Taj Gasoline (Private) Limited, an oil marketing company (OMC) engaged in the fuel retail business, plans to acquire at least 41 percent of its shares.
Hascol is engaged in the procurement, storage, and marketing of petroleum, chemicals, liquefied petroleum gas (LPG), and related products.
The company, which has a network of more than 600 retail outlets across the country, obtained an oil marketing license from the Ministry of Petroleum and Natural Resources in 2005, and acquired assets of an LPG licensed company in 2018.
Millat Energy Group, founded by Hamza Farooqui in 2016, has a focus on real estate, technology, hospitality and financial services. The group comprises of Millat Global Holdings, Millat Tourism and Millat Energy.