SOCAR pays $168.5m for 10.32% stake in Turkey's Petkim

02 April 2012 12:38  [Source: ICIS news]

LONDON (ICIS)--The State Oil Company of Azerbaijan (SOCAR) has won the auction for the Turkish state's remaining 10.32% stake in petrochemical company Petkim with a bid of $168.5m (€126.4m), SOCAR said on Monday.

Azerbaijani state-owned SOCAR, which already controlled sole major Turkish petrochemical producer Petkim through a 51% stake in the firm held by the SOCAR & Turcas investment firm, outbid one other bidder, Turkish plastic packaging company Naksan Plastik.

“SOCAR has once more shown its belief in the future of Petkim,” said SOCAR & Turcas Energy CEO Kenan Yavuz.

The shares in Petkim not held directly or indirectly by SOCAR, amounting to 38.68% of the company, are in free float on the Istanbul Stock Exchange.

Petkim is building a $10bn petrochemical “super site” on a peninsula in Aliaga, near Izmir on western Turkey’s Aegean coast. It is to be modelled on the Jurong Island industrial zone in Singapore, which includes a chemical manufacturing cluster.

The complex will source feedstock from a new 214,000 bbl/day refinery, the Star Refinery, being constructed at a cost of $5bn.

On 27 March, Fitch Ratings downgraded Petkim for “severe underperformance” in the fourth quarter of 2011.

($1 = €0.75)

By: Will Conroy
+44 20 8652 3214

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