JAMSHORO: Jamshoro Joint Venture Limited (JJVL) has shown interest in buying 68 per cent shares of Shell Gas LPG.
Jamshoro intends to buy 15.4 million shares of Shell Gas LPG (Pakistan) Limited, according to a notice sent to the Karachi Stock Exchange on Monday. JJVL is not the only company in the run to buy Shell Gas LPG as JS Private Equity Fund also expressed interest to acquire Shell Gas LPG last week. JJVL, the country’s single largest producer of LPG, is an unlisted company with local and foreign shareholders.
It intends to enter into a share purchase agreement with Shell Gas LPG directly. The company has a daily output of up to 450 metric tons of Liquefied Petroleum Gas (LPG) and 150 metric tons of Natural Gas Liquids (NGL). JJVL currently markets its production through long-term agreements with over 20 licensed LPG marketing companies but after this acquisition these licences might be cancelled and Shell Gas LPG might be the sole marketer.
Shell Gas LPG is an LPG marketing company with its registered office adjacent to Pakistan Refinery Limited, Korangi Creek, Karachi. Share price of Shell Gas LPG went up 5 per cent to Rs55.59 in Monday’s trading on KSE. The stock price has climbed 22 per cent this month. Shell Petroleum Company Limited had recently invited some parties to bid for the acquisition of shares in Shell Gas LPG (Pakistan) Limited. The successful bidder will enter into a share purchase agreement with the Shell Petroleum Company.
Published in the Express Tribune, May 11th, 2010.