SOCAR Vice-President Davud Mammadov: Petkim’s market share to beat 40% in Turkey

SOCAR Vice-President Davud Mammadov: Petkim’s market share to beat 40% in Turkey
# 17 October 2007 13:43 (UTC +04:00)
The alliance of SOCAR&Turcas Joint Venture and Saudi Arabia’s Injaz Projects Company Ltd. competed with four Turkish industrial groups and a number of consortiums of Israel, India, Russia and other foreign countries to buy the lion’s share in privatization of Turkey’s leading petrochemical firm Petkim.
A 51-percent stake in Petkim had been sold to the Kazakhstan-based consortium, Transcentral Asia Petrochemical Holding, in July for $2.05 billion as it offered the highest bid.
On October 16, Turkish Privatization Administration said it presented the second highest bid to the competition authority for approval after canceling the first bidding.
The TransCentralAsia Petrochemical Holding Joint Venture had outbid all of its rivals by offering to pay $2.05 billion.
The second bid of $2.04 billion was offered by SOCAR&Turcas/Injaz.
Mammadov added that Turkey supplies 75% of its demand for petrochemicals through importing.
“Petrochemical market is the most commercial sector in Turkey. Oil and gasoline prices have risen 2-3% while petrochemicals prices have increased 12-13% in Turkey in recent years. Petkim’s market share was 27% in 2006,” he added.
The SOCAR top official noted that the planned funds will be invested in Petkim for 5-6 years in three phases – urgent, intermediate and long-term stages.
“It is intended to receive loans form international financial institutions. After acquiring Petkim, we plan to build a new plant in order to supply crude there. If everything goes on schedule, Petkim’s market share will beat 40% in Turkey,” he added.
The first bidder Kazakh-based Transcentral Asia Petrochemical Holding is reported to be owned by Kazakh national Alexander Matskevich who chairs Eurasian Jews Confederation. He sits in the Forbes List of World’s Richest People.
In the bidding he had been bankrolled by Troika Dialog (commonly referred to as “Troika”), one of the largest investment groups in Russia.
Troika is controlled by Armenian national Ruben Vardanian who owns a 65% stake. Rubben Vardanian is one of the giants who pump money for so-called Armenia-2020 Project which fosters and promotes that Armenians all over the world have to invest in Armenia.
Publicizing his intention to make Armenia the strongest country in the South Caucasus in 2020, Ruben Vardanian would have owned Turkey’s Petkim along with Alexander Matskevich.
18 bidders had stood for the competition to win a controlling stake in Petkim.
TransAsiaCentral Petrochemical Holding Joint Venture Group, Ineos Holdings Ltd (Rankhorn, the UK), purchased the control package of Petkim for $2.05 billion through the tender. This pushed up the market value of Petkim to $4.019 billion.
A little later Petrol IÅŸ Labor Union filed a lawsuit with the 13th Economic Court of Turkey, claiming that the tender had to be cancelled. Musatafa Oztashkin, Chairman of the Labor Union, said the takeover was not to the advantage of the public and was in contradiction to rules of privatization law.
Soon after the tender was cancelled, Oztashkin said he was very glad and he was against privatization of Petkim in general. /APA-Economics/
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