Azerbaijani state upstream operator Socar Monday continued with its buy up of shares in Turkish petrochemical company Petkim.
In a disclosure Tuesday the Istanbul Bourse (IMKB) confirmed that State Oil Company Of Azerbaijan Republic (Socar) Monday bought 1.1 million shares in Petkim at Turkish lira 2.2425 ($1.26) each raising its direct and indirect stake in Petkim to 42.60% from 42.49% at the start of business.
This purchase of Petkim shares was the 13th such purchase by Socar since August 12 when it purchased 5.45 million Petkim shares at TRY2.16 ($1.21) each taking its stake in the company to 40.54%.
In July Socar reached an agreement with Turkeys Aksoy Holding to buy a 23.9799995% stake of the company's 23.98% stake in Socar & Turcas Enerji (STEAS), the joint venture investment vehicle established by the two companies to buy Petkim when the formerly state owned petrochemical company was privatized in 2008.
The purchase took Socar's stake in Petkim from 26.01% to 38.23%. STEAS is now owned by Socar (74.9799995%) and Turcas Petrol (25%) and in turn owns 100% of Socar & Turcas Petrochemicals AS which owns 51% of Petkim.
Turcas Petrol is 51.55% owned by Aksoy Holding.
Petkim is 51% owned by Socar & Turcas Petrochemicals AS, with 10.32% still held by Turkeys Privatization Authority (OIB) and a free float on the Istanbul Bourse of 38.68% of which the IMKB reports 6.55% is held by Aksoy family members.
A source at an Istanbul brokerage confirmed that under IMKB rules Socar is free to continue buying Petkim shares from the free float as long as it discloses its activities to the bourse. If Socar wants to make a formal offer to buy up Petkim shares it would have to be made through majority shareholder Socar & Turcas Petrochemicals AS using IMKB procedures, he said.
