Hascol Petroleum to sell 15pc stake to Vitol

Published November 11, 2015
Hascol’s market value is about $190 million, putting the 15pc stake at around $28.5m.—Courtesy: Hascol website
Hascol’s market value is about $190 million, putting the 15pc stake at around $28.5m.—Courtesy: Hascol website

KARACHI: Hascol Petroleum Ltd is selling 15 per cent of its equity stake to Vitol Dubai Limited, which will have an option to buy another 10pc within one year.

“We would like to inform that a term sheet has been signed by Vitol Dubai Limited with the major shareholders of Hascol Petroleum Limited to buy 15pc of the issued share capital of Hascol,” company secretary Zeeshanul Haq said in a filing on Tuesday.

The news, however, received a cool response from the stock market where Hascol’s stock dropped by Rs6 on Tuesday to close at Rs157.86.

Several market dealers said the major reason for investors concern could be the price, which Hascol has yet to announce, at which Vitol would acquire the 15pc stake.

Hascol’s market value is about $190 million, putting the 15pc stake at around $28.5m, according to Reuters news agency.

But some sector observers said that while Pakistan State Oil (PSO), Shell Pakistan and Attock Petroleum have been the major oil marketing companies (OMCs), Hascol Petroleum is relatively a new kid on the block.

The company was granted a full marketing licence by the government in February 2005. On March 31 this year, Hascol held Rs15 billion in total assets. The company primarily deals in three major products: motor spirits, high speed diesel and furnace oil.

Hascol came in full public view last year when it made the book-building and public offer of 25m shares at the floor price of Rs20 per share and strike price of Rs56.50m, mopping aggregate subscription of Rs1.41bn.

Three quarters of the shares on offer amounting to 18.75m were offered in book-building and 6.25m shares in Initial Public Offering (IPO).

A key concern in the minds of some market experts has been the absence of a strong group backing for Hascol Petroleum.

“Attock Petroleum is under the fold of the Attock Group, Shell International takes care of Shell Pakistan while the government holds major equity in PSO and Parco supports Total,” says a sector expert.

By contrast, Hascol seems to be a one-man mission. Its chairman and CEO, Mumtaz Hasan, holds the majority equity in the company which at March 31, 2015 showed a paid-up capital at Rs906m.

Published in Dawn, November 11th, 2015

Opinion

Storm landing
28 Oct 2021

Storm landing

The notification saga has ended, but so has the ‘same page’.
State of surrender
27 Oct 2021

State of surrender

What’s the difference between TLP’s religious extremism and the government’s encouragement of religiosity?

Editorial

Notification lessons
Updated 28 Oct 2021

Notification lessons

WHILE the stand-off on the nomination of the country’s new spymaster finally came to an end this week, the reality...
28 Oct 2021

Hunger in Afghanistan

THE reports and images emerging from Afghanistan are very disturbing. People selling their belongings and ...
28 Oct 2021

Elegance for eternity

MANKIND’S romance with technology is a charming outcome of the Industrial Age. In recent years — months, indeed...
27 Oct 2021

Escalating prices

ONE question being asked by almost every Pakistani today is: for how long will we have to suffer food price ...
Another demolition
Updated 27 Oct 2021

Another demolition

THE closing act in the battle over the 15-storey Nasla Tower in Karachi has been set in motion. On Monday, the...
27 Oct 2021

A despicable custom

IT is a wonder that it took so long for the Federal Shariat Court to declare the practice of swara un-Islamic. To...