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Taj Petrol is eyeing 41% share in cash-strapped Hascol

Taj Petrol aims to buy a 41% stake in Hascol Petroleum Ltd, Karachi.

In a notice to the Pakistan Stock Exchange (PSX) on Friday, Taj Petrol, a firm involved in the retail sale of petroleum, announced its intention to purchase at least 41% of the outstanding shares of Hascol.

The company (Hascol) has been informed that it has received a public announcement of intention dated June 14, 2023 by Taj Gasoline (Private) Limited (through its manager to the offer, AKD Securities Limited) to conceivably acquire (by way of subscription of shares) at least 41% of the issued and paid up share capital of the Company, Read the notice.

Hascol also stated that it has received a conditional non-binding offer from Taj Gasoline for a potential investment in the firm “by way of subscription of new shares in the company for acquiring at least 41% of the company issued shares post-investment.”

Hascol stated that the offer is subject to due diligence, determining the price and amount of injection, successfully restructuring Hascol obligations, and negotiating transaction documentation.

“It is clarified that the proposal of the potential investor, i.e. Taj Gasoline, is to inject new equity into the company and the existing sponsor shareholders are not intended to sell their shareholding in Hascol,” the notice stated.

As a result, Hascol board approved the management request on Friday to allow Taj Gasoline to conduct a thorough investigation of the company and its activities.

“The board also authorized representatives to facilitate such due diligence, appoint advisors and consultants for the purposes of the arrangement, and enter into negotiations with potential investors for the proposed transaction and related documents.”

“Upon finalization of the terms of the potential arrangement by management, the same shall be presented to the Board of Directors for their consideration and approval,” the announcement stated.

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