Wednesday December 06, 2023

Taj Gasoline eyes 41 percent stake in cash-strapped Hascol

June 15, 2023

KARACHI: Taj Gasoline (Private) Limited on Wednesday announced an intention to acquire at least 41 percent stake in Hascol Petroleum Limited.

In a notice to the Pakistan Stock Exchange, AKD Securities Limited, manager to the offer by Taj, made the announcement. “On behalf of the acquirer, we are pleased to submit a public announcement of intention to acquire at least 41 percent of the issued and paid-up share capital and control of Hascol Petroleum Limited,” the notice read. Taj Gasoline is an oil marketing company with a network of retail fuel stations across Pakistan. According to the company website, it has a storage capacity of 13,000 metric tons at its first oil terminal in Shikarpur, Sindh.

Hascol, a major player in the petroleum industry with a diverse range of products and services, is currently planning restructuring its debts and securing a sustainable future for the company.

The board of directors of the company approved a modified draft scheme of arrangement (SOA) in March, 2023, to deal with its debts, as the company with one of the biggest private sector defaults in Pakistan planned to move forward to please its creditors. The cash-strapped firm had defaulted on whopping Rs54 billion debts, which led to investigations for misappropriations and wrongdoings.

Farhan Ahmad, Hascol company secretary, informed in a bourse notice in March that the modified scheme would be presented to the secured creditors for the requisite approval, followed by members of the company.

The company defaulted on its debts putting the minority shareholders’ money at stake, as its equity turned negative with billions of rupees losses annually. The oil marketing company expects a positive impact of the SOA on its future operations and growth prospects. It’s major player in the petroleum industry, with a diverse range of products and services.

Hascol was incorporated in Pakistan as a private limited company on March 28, 2001. On September 12, 2007 the company was converted into a public unlisted company. It’s been engaged in the business of procurement, storage and marketing of petroleum, chemicals, LPG and related products. On Wednesday, Hascol’s scrip at the bourse closed at Rs5.71, down 2.39 percent or Rs0.14.