OMV sells its wholly owned Petrol Ofisi to Vitol Group
- The overall transaction value amounts to €1.368 billion and the transaction is subject to regulatory approvals, OMV announces

Vienna-based oil and gas company OMV announced late Friday that it has agreed to sell 100 percent of the shares in its wholly owned subsidiary OMV Petrol Ofisi to Vitol Investment Partnership.

The overall transaction value amounts to €1.368 billion, thereof €81 million relate to net cash proceeds from a prior carve-out of OMV’s Turkish gas entities, Austrian company announced with a press release.

According to press release, the transaction is subject to conditions, including the relevant regulatory approvals and is anticipated to close in third quarter of 2017 at the latest.

Vitol Investment Partnership will purchase the Petrol Ofisi with a sub-company, VIP Turkey Enerji AS, OMW said in press release.

Rotterdam-based Vitol is an energy and commodities company. For over 50 years, it has been serving to national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Company engages in trading, refining, shipping, terminals and storage, exploration and production, marketing, and power generation businesses. Vitol operates in Geneva, Houston, London, Moscow, Rotterdam, and Singapore.

Petrol Ofisi, with over 1,709 fuel dispensing facilities across Turkey, has been put for sale in February, 2016 due to financial difficulties. Since then, several international and domestic companies was scrutinizing the sales process. As a leading player in the Turkish fuel distribution industry, Petrol Ofisi also operates the largest retail station network in Turkey. Moreover, it is a major fuels supplier to commercial and industrial customers.

Regarding the sales, OMV's CEO Rainer Seele said in press release that, “The original plan of integrating Petrol Ofisi into the value chain of OMV Group could not be realized. Therefore, the decision to sell the company was the right and necessary step in the course of implementing our corporate strategy. In light of the challenging environment, I am pleased that we successfully concluded the negotiations. ” 

Austrian energy company proclaimed that, OMV will record a further impairment of €186 million in its fourth quarter 2016 financial accounts, based on the purchase price. This booking is in addition to the impairment of €148 million recorded as of December 31, 2016 when OMV reclassified OMV Petrol Ofisi as "asset held for sale".

"A negative foreign exchange rate effect of approximately €1.1 billion has to be recorded in OMV Group net income upon closing of the transaction. This stems from the negative development of the Turkish Lira against the Euro since the acquisition of OMV Petrol Ofisi in 2010. This has no impact on OMV Group equity since corresponding foreign exchange translation effects were directly charged to Group equity in prior periods" said in the press release.

Reporting by Nuran Erkul

Writing by Muhsin Baris Tiryakioglu

Anadolu Agency


04 Mar,2017