Karachi, April 3, 2024 – Pakistan Refinery Limited (PRL) and Air Link Communication have jointly announced their decision to withdraw their intention to acquire Shell Pakistan, citing failed negotiations with the seller.
In a statement submitted to the Pakistan Stock Exchange (PSX) on Wednesday, PRL and Air Link stated that despite efforts, negotiations with the seller could not materialize, leading to the withdrawal of their intention to acquire 77.42 percent shares and control of Shell Pakistan Limited.
The decision to withdraw the Public Announcement of Intention (PAI) was made under Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
The joint statement affirmed, “The Acquirers (Pakistan Refinery Limited and Air Link Communication Limited) hereby withdraw the intention to acquire 77.42 percent shares and control of Shell Pakistan Limited under Regulation 21(1)(b) of the Regulations.”
Furthermore, the withdrawal of the PAI will be formally published on April 3, 2024, in the same newspapers where the initial announcement was made.
This decision comes after Next Capital Limited, acting as the manager to the offer, submitted a PAI on behalf of Pakistan Refinery Limited and Air Link Communication Limited on July 17, 2023, to acquire the majority shares and control of Shell Pakistan.
The withdrawal of the acquisition bid marks a significant development in the corporate landscape, impacting the future trajectory of Shell Pakistan and potentially influencing the strategies of both PRL and Air Link Communication in the market.
The failed acquisition underscores the challenges and complexities involved in such high-profile transactions, highlighting the importance of robust negotiations and due diligence processes in corporate dealings.
As both companies reassess their strategies in light of this development, stakeholders will closely watch for any subsequent announcements regarding their future plans and potential endeavors in the market.
For now, Shell Pakistan remains under its existing ownership, and the withdrawal of the acquisition bid brings an end to the chapter of speculation surrounding its potential change in control.
