Results of elections in Turkey prevented SOCAR from selling part of its shares in Petkim

State Oil Company of Azerbaijan (SOCAR) has refused to sell 3.4% of bloc of shares of the Turkish petrochemical complex Petkim, which is in free circulation at the stock exchange, reads information posted on the web site of Kamuoyunu Aydınlatma Platformu (KAP) – Turkish state agency for publicity information.

On June 5, 2015 SOCAR announced its intention to sell part of shares in Petkim. Sources familiar with the situation told Turan that the outcome of parliamentary elections in Turkey has prevented SOCAR from closing the deal.

For the first time during the past 13 years the ruling party of Turkey failed to receive overwhelming majority votes of electors and form the government. As a result of that on Monday June 8 business activity went down at the Istanbul Exchange and shares of many companies run by the government went down. In addition, exchange of rate of local currency – Turkish Lira – dropped to its historical minimum – 2.8 Lira for $1.00 USD.

Therefore, SOCAR decided to postpone sale of Petkim’s shares till restoration of political and economic stability in the country.

According to some sources, if the coalition government is not created in Turkey in the coming two weeks, then new elections will be conducted.

During 2014 cost of shares of Petkim holding was the highest among 30 big companies quoted at the Istanbul stock exchange.—0—