AKD group will purchase 7 per cent of the shares during divestment process while the remaining would be sold in local and foreign investors
KARACHI: IGCF Oil and Gas Ltd, previously known as Abraaj Mauritius, one of the shareholders of Byco Industries Incorporated (BII) has signed an agreement with AKD Group for divestment of its 22 per cent shares in Byco Petroleum Pakistan Ltd.
The agreement has been signed on Wednesday, a source present in the deal confirmed.
The source said, “AKD group will purchase 7 per cent of the shares during divestment process while the remaining would be sold in local and foreign investors.” Total investment of the IGCF Oil and Gas Ltd is around 37 per cent in Byco petroleum Pakistan, the source claimed.
Recently, the Byco Petroleum Ltd has announced that IGCF Oil and Gas Limited, previously known as Abraaj Mauritius Oil and Gas SPV Ltd, (IGCF) one of the shareholders of Byco Industries Incorporated (BII) is desirous of reducing its indirect equity investment in Byco Petroleum Pakistan Ltd (BPPL) held through BII, the notice said.
Accordingly, as per arrangement agreed with IGCF, BII intends to divest up to 22 per cent share of BPPL, it added. BII intends to appoint advisors for potential sale by way of private placement to local and international investors subject to market conditions, notice said.
Sources said that a consortium of Pakistan’s local leading businessmen is interested to buy 22 percent stakes of Abraaj Group in the Byco refinery in Pakistan.
Sources told that deal is at the final stage and the share purchase agreement will be signed in the next few days.
Byco located in the Hub area of Balochistan is Pakistan’s leading Petroleum Company is operating for oil refining, petroleum marketing, and petroleum logistics.
Byco has the capacity to refine 155,000 barrels a day. It converts crude oil into various saleable components which included LPG, Light Naphtha, Heavy Naphtha, High Octane Blending Component. Other components include Motor Gasoline, Kerosene, Jet Fuels, High-Speed Diesel and Furnace Oil.
The move comes in wake of the new oil refinery policy which proposes 10 percent protection for existing refineries.
It also offers some incentives for up-gradation projects for existing refineries on the model of incentives for new refineries.
Officials said that with upcoming projects in special economic zones (SEZs), the demand for petroleum products would further increase. In addition, the government claims that Pakistan still needs two refineries with an accumulative refining capacity of 400,000 barrels per day.
Therefore, Byco has still a lot of potential for business in coming years keeping in view the rising demand for petroleum products, an industry official said.