A minority shareholder has raised objections to Shell Pakistan Limited’s sale to Saudi Arabia’s Wafi Energy Holding Limited, arguing that the share price does not accurately reflect the company’s true value due to the concentration of shares among a few large investors.

Mian Bilal Arshad, the dissenting shareholder, has filed a complaint with the Securities and Exchange Commission of Pakistan, claiming that Shell bypassed higher offers from other investors in favor of Wafi Energy, as reported by Bloomberg.

Arshad has urged authorities to explore legal options to ensure that minority shareholders receive fair value for their shares in the company.

Shell has defended the sale, stating that the agreement was reached following a selective sales process. The company explained that the sale of its majority shareholding in Shell Pakistan Limited aligns with Shell Group’s strategy and commitment to enhance its mobility network. This move reflects Shell’s focus on performance, discipline, and simplification.

The sales agreement was the result of a targeted process, with Shell selecting Wafi Energy as the preferred buyer due to its regional expansion strategy and commitment to building on Shell Pakistan Limited’s legacy. Shell stated that the sales process is adhering to all regulatory requirements, including those of the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange.

Shell’s decision to exit Pakistan comes after 75 years of operations in the country, driven by the ongoing economic crisis. The company has an existing relationship with Wafi Energy, having appointed Wafi as the sole representative of Shell-branded fuel stations in Saudi Arabia through an agreement signed in 2022.