- Sale is predicted to be accomplished by fourth quarter of 2024.
- Shell model will stay in Pakistan through model licensing agreements.
- WAFI Vitality is a fast-growing retail gasoline station community.
Shell Petroleum Firm Restricted, a subsidiary of Shell plc (Shell), has agreed to promote its 77.42% majority curiosity in Shell Pakistan Restricted (SPL) to Saudi Arabia-based Wafi Vitality LLC, stated an official assertion issued by the corporate on Wednesday.
“The sale is a part of Shell’s technique to high-grade its mobility community and was first introduced on Capital Markets Day in June 2023,” the assertion added.
The sale is predicted to be accomplished by the fourth quarter of 2024, topic to regulatory approvals.
Upon completion, the Shell model will stay in Pakistan by means of model licensing agreements and clients will proceed to have entry to Shell’s premium gas and lubricant portfolio, it stated.
“SPL stays dedicated to delivering secure, dependable operations.”
WAFI Vitality LLC, one of many main gas station firms in Saudi Arabia, is a fast-growing retail gasoline station community and the only real licensee of Shell Retail Community in Saudi Arabia.
The corporate was included in 2012 with an authorised and paid-up capital of three million Saudi Riyal.
The event got here after Shell Pakistan’s dad or mum firm, Shell Petroleum Firm Restricted (SPCo), notified its intent to promote its shareholding within the Pakistani entity in June this yr.
SPCo had a 77.42% stake in Shell Pakistan as of December 31, 2022, in keeping with the annual report for that yr.
Shell Pakistan stated on the time that the divestment plan would don’t have any impression on its present enterprise operations, which might proceed as traditional. The corporate additionally stated that it was seeing robust curiosity from worldwide consumers.
Shell Pakistan is likely one of the main oil advertising firms in Pakistan, with a community of over 800 stores throughout the nation. The corporate reported a revenue after tax of Rs6,450 million for the 9 months ended September 30, 2023, in comparison with Rs2,864 million in the identical interval final yr.