Pakistan Refinery transfers Shell’s 29pc stake to PSO

KARACHI: Pakistan Refinery Limited (PRL) on Monday announced the transfer of around 29 percent of its shares held by British Shell to Pakistan State Oil (PSO), more than doubling the total shareholding of the leading state-owned oil marketing firm in the refinery.

Total 84 million class-B shares of Shell Petroleum Company Limited, United Kingdom in Pakistan Refinery Limited (PRL) acquired by PSO – 28.571 percent of the total paid-up capital – “were formally transferred on December 01, 2018, resulting in total shareholding of PSO increased to 52.67 percent in PRL,” the oil refinery said in a filing with the Pakistan Stock Exchange (PSX).

“Effective December 01, 2018, PSO holds 154.875 million class-B shares in PRL,” it added. “Class-B shares of PRL are not listed on the PSX.”

Last month, PSO disclosed the transaction relating to the acquisition.

PSO acquired the shares “at the rate of Rs10 per share from Shell Petroleum Company Limited, United Kingdom pursuant to share purchase agreement dated June 16, 2015,” the oil marketing company said in a bourse filing then.

“Before this acquisition we (PSO) were holding 70.875 million B class shares – 24.107 percent of the paid-up capital – of the company (PRL),” it said.

“After… acquisition our total shareholding in the company is 154.875 million B class shares, which represent 52.678 percent of the total paid-up capital of the company.”

In June 2016, PRL issued 259 million right shares out of the total size of the issue of 280 million at the rate of Rs10/share, as 21 million right shares were not issued due to the restraining order obtained by PSO against another shareholder Chevron Global Energy Inc.

The order directed all the defendants to maintain status quo in respect of the letters of rights issued to and shares held by Chevron. It also restrained Chevron from creating any third party interest in respect of shares offered to it under the letters of rights issued to another class-B shareholder, namely Shell.

In May 2015, PRL issued the letter of rights in line with the decision of its board of directors, offering its shareholders 800 percent of the total shares that the respective shareholders held as on April 10, 2015 at par value of Rs10/share as the rights issue.

Shell sought offers from the two companies – PSO and Chevron – for the 84 million shares offered to Shell under the rights issue. Of these, 63 million shares were offered to PSO and the remaining 21 million to Chevron in accordance with provisions of the participants’ agreement.

Under the agreement, if Chevron fails to accept Shell’s offer within the prescribed 30 days, PSO would be entitled to 21 million shares offered to Chevron. Later, PSO conveyed its intent to Shell to acquire, subject to Chevron’s response, all the 84 million shares.