In a move aimed at integrating different parts of its petroleum supply chain, the board of directors of Byco Petroleum Pakistan Limited (BPPL) approved a potential merger of BPPL and its wholly owned subsidiary, Byco Terminals Pakistan Limited (BTPL), with its holding company, Byco Oil Pakistan Limited (BOPL).
The transaction is subject to approval by BPPL’s shareholders, receipt of regulatory approvals and other customary closing conditions.
The proposed merger would create an unparalleled portfolio with substantial value for Byco’s shareholders and investors.
The new entity would have a vertically integrated footprint that would encompass Pakistan’s largest oil refinery, the biggest oil storage facilities, the country’s only Single Point Mooring (SPM) as well as a petroleum marketing network of more than 250 stations.
Byco Petroleum, which is listed on the stock exchange, has a 35,000-barrel-per-day (bpd) refinery and a marketing company with more than 254 retail outlets. It also owns a liquid terminal through a wholly-owned subsidiary. The majority stake of this entire enterprise is held by Byco Oil Pakistan, a holding company used by local and foreign sponsors to control the group. Byco Oil, in turn, owns a 120,000-bpd refining complex.
Shareholders in Byco Petroleum will probably be issued shares in Byco Oil under the merger arrangement.