Hascol Petroleum Limited announced that Millat Energy Group has expressed its intention to acquire a substantial 76% stake in the company.
In a recent notice to the Pakistan Stock Exchange (PSX), Hascol Petroleum Limited announced that Millat Energy Group has expressed its intention to acquire a substantial 76% stake in the company. The notice revealed that the potential investor, represented by Millat Global Holdings, a DIFC company, conveyed a non-binding letter of intent for the acquisition.
The notice stated, “On the basis of the non-binding letter of intent received from Millat Energy Group, through its investment holding company, Millat Global Holdings, a DIFC company (potential investor), to acquire, through subscription, 76% fully diluted share capital of the company, the management be and is hereby authorized to invite the Potential Investor to undertake due diligence of the company and provide necessary access to the company’s VDR.”
However, the development is subject to certain conditions, including the execution of non-disclosure agreements, the publication of a public Notice of Intent to acquire shares, compliance with relevant securities regulations, and a binding offer submission timeline of six weeks from the commencement of due diligence by the potential investor.
Earlier in the year, Hascol Petroleum had informed the PSX about Taj Gasoline (Private) Limited, an oil marketing company (OMC) in the fuel retail business, planning to acquire at least 41% of Hascol’s shares.
Millat Energy Group, founded by Hamza Farooqui in 2016, operates as a leading financial advisory and private equity firm with a focus on various sectors such as real estate, technology, hospitality, and financial services. The group comprises Millat Global Holdings, Millat Tourism, and Millat Energy.
The potential acquisition comes at a time when Hascol Petroleum Limited has reported a significant consolidated loss of Rs13.1 billion in the nine-month period ending September 30, 2023. This loss is notably higher than the Rs9.43 billion recorded in the same period of the previous year.
The move by Millat Energy Group signals a potential strategic shift in the ownership and direction of Hascol Petroleum. The due diligence process and subsequent steps, including the binding offer submission, will be crucial milestones in determining the outcome of this proposed acquisition.
As the companies navigate the regulatory requirements and engage in negotiations, the broader implications for the energy sector and the companies involved will be closely monitored by investors and industry observers.