Islamabad June 16 2023: Hascol Petroleum Limited, an associate of Vitol Dubai holding, is looking for equity injection by Taj Gasoline as a part of company’s restructuring and settlement of certain liabilities rather than stake sale, according to company filing to the exchange.
Hascol Petroleum Limited, pertaining to the proposed rehabilitation of the Company through restructuring and settlement of certain liabilities, including with respect to the Company’s intent to receive and evaluate strategic options for the raising of equity it is hereby informed that the Company has received (i) a public announcement of intention dated June 14, 2023 by Taj Gasoline (Private) Limited (the “Potential Investor”), through its manager to the offer i.e. AKD Securities Limited, to potentially acquire (by way of subscription of shares) at least 41% (forty one percent) of the issued and paid up share capital of the Company; and (ii) a conditional non-binding offer from the Potential Investor for a potential investment in the Company, by way of subscription of new shares in the Company for acquiring at least 41% (forty one percent) of the issued shares of the Company post-investment, subject to, inter alia, due diligence, price determination and quantum of injection, successful restructuring by the Company of its liabilities, and negotiation of transaction documents.
Hascol clarified that the proposal of the Potential Investor is to inject new equity into the Company and the existing sponsor shareholders are not intended to sell their shareholding in the Company.
Consequently, at the meeting of the Board of Directors of the Company held on 16 June 2023, at the corporate office of the Company at Karachi, the Board reviewed the terms of the non-binding offer received from the Potential Investor and resolved to authorize the management to permit the Potential Investor to carry out a due diligence of the Company and its business / operations.
The Board also authorized representatives to, inter alia, facilitate such due diligence, appoint advisors and consultants for the purposes of the arrangement, and enter into negotiations with the Potential Investor for the proposed transaction and documents pertaining thereto. Upon finalization of the terms of the potential arrangement by the management, the same shall be presented to the Board of Directors for their consideration and approval.
