Wafi Energy Holding Limited’s public offer to acquire up to 11.29% of Shell Pakistan Limited’s (SHEL) shares concluded on September 19, 2024. According to Arif Habib Limited, the manager of the offer, the number of shares tendered was below the threshold of 24.16 million but above the conditional offer’s minimum acceptance level of 16.91 million.
All shareholders who tendered their shares will be considered successful, provided they complete the necessary documentation. This marks a successful completion of the public offer, fulfilling Wafi Energy Holding’s acquisition objectives.
WAFI ENERGY’S ACQUISITION OF SHELL PAKISTAN SHARES
Wafi Energy LLC initially signed a share purchase agreement on October 31, 2023, to acquire 165.7 million shares—equivalent to 77.42% of Shell Pakistan’s total issued ordinary share capital—at a price of Rs118.00 per share. However, in April 2024, Wafi Energy Holding Limited replaced Wafi Energy LLC as the acquirer due to a change in the company’s ownership structure. The transition was formalized through a novation agreement effective April 1, 2024.
In July 2024, Wafi Energy extended the offer by 90 days and announced plans to purchase an additional 24.16 million shares at Rs155.11 per share. The letters of offer were then dispatched to all shareholders by Arif Habib Limited.
MINORITY SHAREHOLDER OBJECTION
Earlier in 2024, a minority shareholder, Mian Bilal Arshad, raised objections to the sale of Shell Pakistan to Wafi Energy. Arshad’s complaint, submitted to Securities and Exchange Commission of Pakistan (SECP), claimed Shell ignored higher offers from other investors, questioning whether the share price reflected the company’s true value.
In response, Shell stated that the sale was the result of a thorough process, with Wafi Energy chosen as the best fit due to its strategic expansion plans in the region and commitment to building on Shell Pakistan’s legacy.
