IGCF offloads 9.8% shares in Byco Pakistan
Aftab Ahmed
Islamabad: A foreign company IGCF Oil and Gas Limited has offloaded 9.8 per cent shares out of total 22 percent in Byco refinery.
AKD Group has also bought significant quantity of shares in recent transactions of shares in Byco Petroleum Pakistan Limited.
This amounts 10 percent shares out of total 22 percent, a foreign company has announced to offload.
A local company has bought 308,522,000 shares out of total 522,825,000 shares IGCF Oil and Gas Limited has sold.
A mutual fund has acquired 52,855,000, brokers 37,235,000 and overseas 33,213,000 shares.
Earlier. IGCF Oil and Gas Limited is previously known as Abraaj Mauritius, one of the shareholders of Byco Industries Incorporated ( BII ) has decided to divest 22 percent shares in Byco Petroleum Pakistan Limited.
As per arrangements agreed with IGCF, BII intends to divest up to 22% shares of BPPL, the company said in a Notification issued to Pakistan Stock Exchange.
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.
One of the leading businessmen will acquire 7 percent shares whereas remaining shares may be acquired by a consortium of other businessmen.
Sources told Newztodays.com 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. Headquartered in Karachi.
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 in Pakistan keeping in view the rising demand for petroleum products, an industry official said.
Officials said that Byco is going to finalize a Karachi-based business group as a financial advisor in a couple of days to materialize the sale of Abraaj stakes in the refinery. The business group will also acquire some of Abraaj’s stakes in the refinery.
After signing a deal, a financial advisor will also have a mandate to negotiate a deal with a consortium of businessmen to acquire stakes in the Byco refinery.
According to media reports, Byco management had also settled an issue with National Accountability Bureau (NAB). Therefore, now the road is clear for maturing a deal, industry officials added.
