Minority stakeholder challenges Shell’s sale of Pakistani unit to Wafi Energy

A minority shareholder has filed a complaint against Shell Pakistan’s sale to Wafi Energy Holding Limited, citing concerns that the company ignored higher offers from other investors and sold the business at an undervalued price, Bloomberg reported yesterday.

Mian Bilal Arshad, a shareholder, wrote a letter to Shell Pakistan’s local unit and the Securities and Exchange Commission of Pakistan (SECP), expressing his discontent with the sale. He claimed that the company’s share price does not accurately reflect its true value, given that Shell Pakistan is mostly held by a few large investors.

The sale process was deemed to be ‘targeted’ and followed all regulatory requirements, according to a spokesperson for Shell. However, Arshad is urging authorities to consider all legal remedies to ensure that minority stakeholders receive fair value for their holdings.

The sale marks the end of Shell’s 75-year presence in Pakistan, which was struggling through its worst-ever economic crisis at the time. The relationship between Shell and Wafi Energy extends beyond this deal, as they signed an agreement in 2022 making Wafi the sole representative of Shell-branded fuel stations in Saudi Arabia.