OPI Gas plans to increase stake in Shell Gas LPG

OPI Gas Limited has announced its intention to acquire another 16 per cent stake in Shell Gas LPG.


Faseeh Mangi August 13, 2010

KARACHI: OPI Gas Limited has announced its intention to acquire another 16 per cent stake in Shell Gas LPG (Pakistan) for Rs119.56 million. This will take OPI Gas share in Shell Gas LPG to 84 per cent.

OPI Gas entered into a sale-purchase agreement in June with Shell Gas LPG to acquire 68 per cent shares for $8 million. However, the shares have not been transferred so far as the process is still in progress, said a notice sent to the Karachi Stock Exchange on Thursday.

Additional acquisition of Shell Gas LPG will add significant value to the company’s existing LPG marketing business, the company said. This will provide an enhanced quota from LPG producers and allow the company to benefit more, it said.

Shell Gas after the agreement will merge with OPI Gas to operate as a single listed company.

OPI Gas, an LPG marketing company, is a subsidiary of Hashoo Group. The company is primarily engaged in storage, filling and distribution of LPG-filled cylinders.

OPI Gas and Shell Gas LPG had an equal market share of 25,000 tons annually before the merger.

Power Gas, Jamshoro Joint Venture Limited and JS Private Equity Fund had also expressed interest in acquiring Shell Gas LPG.

The share capital of OPI Gas is Rs100 million while the issued paid-up capital is Rs30 million.

OPI Gas turned into a profitable firm during fiscal year 2009 after four years of losses. The firm started operations in 1998.

The stock price of Shell Gas LPG fell 4.3 per cent to close at Rs35.37.

Published in The Express Tribune, August  13th, 2010.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ