PRL, Air Link withdraw Shell bid

KARACHI: Pakistan Refinery Limited (PRL) and Air Link Communication Limited announced on Wednesday that they have withdrawn their bid to acquire a 77.42 percent stake in Shell Pakistan Limited.

The decision comes after negotiations with the seller failed to reach a conclusive agreement.“However, negotiations with the seller could not materialize; therefore, the acquirers hereby withdraw the intention to acquire 77.42 percent of the shares and control of Shell Pakistan Limited,” both companies said in a statement to the Pakistan Stock Exchange.

This development follows the Public Announcement of Intention (PAI) submitted by both entities on July 17, 2023, signaling their intent to take over the majority shareholding of Shell Pakistan.

The move to sell shares by Shell Pakistan's Board of Directors was initially made public on June 14, 2023, following Shell PLC's decision to exit the Pakistani market. This announcement led to widespread speculation regarding the potential buyers for Shell PLC's stake in the country.

Saudi Wafi Energy Co., which recently entered into a trademark licensing agreement with Shell Global to penetrate the Saudi mobility market, was among the speculated frontrunners. The partnership between the two companies had fueled expectations that Saudi Wafi Energy Co. might replicate its Saudi Arabian success in Pakistan.

PRL, a subsidiary of Pakistan State Oil Company Limited (PSO), is one of Pakistan's five operating refineries, specializing in the production and sale of petroleum products. Air Link Communication, a leading player in Pakistan's telecom industry, boasts extensive experience as a smartphone distributor, manufacturer, and retailer.