Karachi September 18 2024: A minority shareholder filed a complaint against Shell Plc’s unit in Pakistan over its sale to Saudi Arabia’s Wafi Energy Holding Ltd. earlier this year, reported by Bloomberg.
Shell ignored offers from other investors that offered a higher price, said Mian Bilal Arshad, a shareholder, in a letter sent to the company’s local unit and the Securities and Exchange Commission of Pakistan. Also, the share price isn’t indicative of the true value because Shell Pakistan Ltd. is mostly held by a few large investors, the letter, seen by Bloomberg News, said.
“The sales agreement followed a targeted sales process, and after consideration Shell selected Wafi Energy as the right buyer, given Wafi Energy’s strategy to expand in the region and its commitment to building upon Shell Pakistan’s existing legacy,” a spokesperson for Shell said in an emailed reply to questions. The sales process follows all regulatory requirements, the spokesperson said. The Securities and Exchange Commission of Pakistan and Wafi Energy didn’t respond to requests for comment.
Shell decided to exit Pakistan last summer after 75 years of operation in the South Asian country, which was going through its worst-ever economic crisis.
The relationship between Shell and Wafi extends to other regions. They signed an agreement in 2022 making Wafi the sole representative of Shell-branded fuel stations in Saudi Arabia.
Arshad urged the authorities to consider all legal remedies to ensure minority shareholders get fair value for their holdings.
