Azeri SOCAR plans ‘to reduce stake in Turkey’s Petkim’

Azeri SOCAR plans ‘to reduce stake in Turkey’s Petkim’

Azeri SOCAR plans ‘to reduce stake in Turkey’s Petkim’

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Azeri state energy company SOCAR plans to sell part of its stake in Turkish petrochemicals company Petkim to cash in on a rise in its share price, SOCAR’s president was quoted as saying by Azeri news agency APA-Economics on July 22.

SOCAR-Turkey has built a 65 percent holding in Petkim since 2007, most recently adding a 10 percent stake bought from the state in 2012.

“Petkim’s share price rose to 4.35 Turkish lira ($1.60) per share from 1.8 Turkish lira in the past two years and that’s why we would like to sell some of our shares.” SOCAR President Rovnag Abdullayev told APA-Economics.

However, the chairman of SOCAR’s Turkish unit, Kenan Yavuz, told Reuters that SOCAR has no intention of allowing its stake in Petkim to fall below the 51 percent controlling level.

“Petkim is the foundation of all our investments and we have a master plan concerning this until 2030,” he said, adding that a sale was possible of shares bought on the stock market in 2009/10.

“We have a 65 percent stake in the company and sometimes consider a sale that would not bring the stake below 51 percent. The timing of a sale has not been decided but could be considered this year,” Yavuz said. 

SOCAR Turkey is building a refinery and a container port on the Petkim Peninsula with the aim of integrating refinery, petrochemical and logistical operations at the site. The investments worth around $10 billion at the site have been made within the framework of Petkim’s Value-Site 2023 Project, company representatives told earlier.