OMV enters Turkey
Posted: 20 March 2006
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OMV, Central Europe’s leading oil and Gas Company, has agreed with the Turkish company Doğan Holding to acquire a 34 per cent stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.
A presence in Turkey will also strengthen OMV’s E& P business in its search for new opportunities in the Middle East and Caspian Region, the company said.
The consideration paid amounts to $1.054 billion, which will be financed through cash flow and existing credit facilities.
After the sale, Doğan Hold-ing’s stake will be reduced from 86.7 per cent of Petrol Ofisi to 52.7 per cent. Doğan Holding and OMV will jointly control the company’s business activities, with both companies oper-ating as equal partners.
The Board of Petrol Ofisi will have eight directors, four of which would be appointed by OMV and four by Doğan Holding. Currently 13.2 per cent of the shares are held by other investors with the shares already listed on the Istanbul Stock Ex-change.
The agreement is subject to the approval of the relevant authorities, which is expected in the second quarter of 2006.
OMV’s CEO Wolfgang Ruttenstorfer said: “Entering the Turkish market is fully in line with OMV’s 2010 strategy to further expand its leading position in the European growth belt. The acquisition will be earnings accretive from closing onwards. Turkey is one of the biggest and fastest growing markets in the region and is closely connected to the European Union.”
OMV’s Deputy CEO responsible for Refining and Marketing, Gerhad Roiss, added: “With the acquisition of a 34 per cent stake in Petrol Ofisi we have made another major step in the expansion of the Refining and Marketing business along the European growth belt. Petrol Ofisi has the only country-wide filling station network in the rapidly growing Turkish market. OMV is already market leader in Central Europe with more than 2,400 filling stations. With the approximately 3,600 stations of Petrol Ofisi, we further strengthen our position as one of the leading players in the European filling station market. ”
Posted by Editor Pipeline Magazine
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