Cnergyico to buy 57.37pc of Puma Energy Pakistan

KARACHI: Cnergyico Pk Limited is set to buy controlling stake in Puma Energy Pakistan Private Limited, which will double its retail business and make it the second-largest fuel retailer in the country.

“Cnergyico Pk Limited’s board of directors have approved the acquisition of 57.37 percent shares of Puma Energy,” the company said in a statement on Thursday.

Bloomberg News reported the deal valuing the company at more than Rs4 billion. Singapore-based Puma Energy Holdings Pte had sold its stake in the Pakistan unit to joint venture partner Chishti Group last month.

Moreover, Cnergyico will continue to operate the two brands separately, Bloomberg said.

Cnergyico -- formerly Byco Petroleum Pakistan Limited -- having one of the largest refining capacity in the country, “after this acquisition would have the second largest retail fuel network based on the current number shared by OMCs in Pakistan”.

Puma Energy Holdings Pte, a failing emerging-market gasoline retailer and storage firm, was previously in talks to sell its infrastructure assets in more than 30 locations. Following a debt-fueled acquisition blitz, Puma Energy Holdings Pte has not posted an annual profit since 2017,

Puma Energy runs 542 petrol pumps and owns two storage terminals in Machike, Punjab and Daulatpur, Sindh that can together store up to 10,500 tons of petroleum products.

The statement said Cnergyico would be the supply backbone of the second largest amassed retail network of fuel stations in Pakistan.

“The acquisition of the majority stake in Puma Energy demonstrates our continued interest to further strengthen and diversify our business,” said Amir Abbassciy, chief executive officer of Cnergyico. “We have made a commitment to grow, modernise, and diversify our business and the takeover of Puma Energy will help support this strategic plan.”

Cnergyico is the owner of Pakistan’s biggest oil refineries with an installed total capacity of 156,000 barrels per day located in Hub, Balochistan. Furthermore, the company owns a dedicated deep-sea oil terminal that is used to import oil for the refineries.

Cnergyico is engaged in the businesses of oil refining, petroleum marketing, and petroleum logistics.

Bloomberg reported Cnergyico will get 542 petrol stations as part of the acquisition, which will bring its total to around 1,000. The state-owned Pakistan State Oil operates 3,500 retail stations of its own, while Shell operates 766 locations around the country.