Why did SOCAR sell 13% of its Turkish shares to the US bank?

US Goldman Sachs International (GSI) bank established by Goldman Sachs Group has become shareholder of SOCAR Turkiye Enerji (100% daughter company of State Oil Company of Azerbaijan (SOCAR), Kenan Yavuz, SOCAR Turkiye Enerji President, said on his Facebook web page.

GSI has paid $1.3 billion for 13% shares of SOCAR Turkiye Enerji

 “Upon consent of the sides, Goldman Sachs has the right to sell its share in SOCAR Turkiye Enerji through IPO within coming six years. If the sale fails to take place within the certain period, Goldman Sachs has the right to sell 10% shares back to SOCAR Turkiye Enerji and the remaining 3% could be sold to SOCAR-owned Sermaye Investments Limited company,” explained Yavuz.

He said the deal with GSI will allow SOCAR Turkiye Enerji to pay about $1 billion of the credit borrowed to privatize Petkim ahead of time.

Yavuz also added that the investment portfolio of SOCAR Turkiye Enerji totals $20 billion.

SOCAR Turkey Enerji was established at the end of 2006 to implement the investment projects in the oil refining, petrochemical and natural gas trade sectors in Turkey.—0-