Shareholder submits complaint against Shell Pakistan's sale

A minority shareholder has submitted a complaint to the Securities and Exchange Commission of Pakistan (SECP) against the sale of Shell Petroleum Company's Pakistan unit to Saudi Arabia's Wafi Energy.

According to a Bloomberg report, the shareholder, Mian Bilal Arshad, stated in the complaint letter that Shell ignored offers from other investors that offered a higher price. He also wrote that the share price wasn't indicative of the unit's true value since Shell Pakistan is mostly held by a few large investors.

Arshad urged the SECP to use all legal remedies to make sure that minority shareholders get fair value.

In a comment to Bloomberg, a Shell spokesperson said the sales process was in line with all regulatory requirements.

"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," the spokesperson said.

Shell had decided to exit Pakistan last year after 75 years of operations amid one of the country's worst economic crises. The company announced in November that it had signed a deal with Wafi Energy to sell domestic operations.

The decision had been made following Shell Pakistan's losses in 2022 due to the rupee's rapid devaluation and overdue receivables among other reasons.