TURKEY: Socar sells its stake in Petkim

Azerbaijan’s state-owned energy company Socar sold 2.75 percent of its stake in Turkey's petrochemical giant Petkim to a foreign investment fund, Socar announced.

“It’s an ordinary business deal of selling stake acquired few years ago at a lower price," Socar reported. Each stake will be sold approximately at a price exceeding its original cost by 2.5 times. "We gained significant profit from this deal. Revenues received from the sale of stakes will be reinvested in Socar’s other projects in Turkey,” the company said.

Turkey’s Public Disclosure Platform (KAP) reports that this stake was sold for 147 million liras (USD51 million).

Socar's shares in Petkim are held through its subsidiary, Socar Turkey Enerji. Socar also said that the current deal won’t affect the overall controlling block of shares volume in Petkim and Socar will continue to effectively manage this enterprise.

Purchase of the Petkim’s stake by a foreign investment fund at a high price demonstrates economic attractiveness of the mentioned stake. After selling 2.75 percent of its shares, Socar was left with a 56.32 percent equity stake in this petrochemical holding in Turkey.

Petkim is a sole manufacturer of plastic packages, fabrics, detergents, and other petrochemical products in Turkey.

By the end of 2015 Petkim’s assets increased by 44 percent as compared to 2014. Its net profit stood at 639.2 million liras in 2015.

Source: Daily “AzerNews”, Baku, Azerbaijan; 28 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)