Byco companies merge to become single entity

Integration expected to help cut expenses, restructure debt

KARACHI: Byco Petroleum Limited has absorbed its holding and subsidiary companies and stood as a single entity after a court of law gave final nod to the merger and amalgamation plan, according to a bourse filing on Tuesday.

The integration of three companies into one is expected to help bring down expenditures, restructure debt and create financial strength to enable the entity to focus on its core businesses - import terminal, refining of petroleum products and their marketing in Pakistan.

“The High Court of Sindh dated January 19, 2017 has sanctioned the merger/amalgamation of Byco Oil Pakistan Limited and Byco Terminals Pakistan Limited with and into Byco Petroleum Limited,” Company Secretary Majid Muqtadir said in a notification to the Pakistan Stock Exchange.

Byco’s stock hit its upper lock of 5% - the maximum limit to which a stock is allowed to move in a single day - and closed at Rs22.99. Besides, it emerged as the volume leader of the day with 14.69 million shares traded.

Byco Petroleum Limited has a 35,000-barrel-per-day (bpd) refinery and a marketing company with 261 retail outlets across the country, according to its latest quarterly report.

It also owns a liquid terminal, as a wholly owned subsidiary, for the import, storage and supply of petroleum products in the country.

Justice Muhammad Shafi Siddiqui said in his decision that “apart from the formal objection of the regulatory authority ie SECP (Securities and Exchange Commission of Pakistan) and despite public notice, none of the shareholders of companies has filed any objections in relation to the merger...It is claimed by the petitioners that no swap ratio of defendant No 3 [Byco Terminals Pakistan Limited] is required whereas 100% share equity would be given to the shareholders/directors of petitioner No 1 [Byco Petroleum Limited], I do not see any real objections coming forward on record by the regulatory authority ie SECP.

“The NOC (No-Objection Certificate) of minor shareholders that is being claimed is not required in view of the decision of majority shareholders and board decision, as reflected in chairmen reports of three petitioner companies.”

Published in The Express Tribune, April 5^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.