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OMV Closes Acquisition of 54.14% in Petrol Ofisi

Source: 12/22/2010, Location: Europe

OMV, the leading energy Group in the European growth belt, completed the acquisition of a 54.14% stake in Petrol Ofisi A.S., one of the leading companies in the Turkish oil products retail and commercial markets following the approval of the transaction by the relevant authorities including anti-trust clearance. With this transaction OMV increases its stake in Petrol Ofisi from 41.58% to 95.72%, thereby fully consolidating the company within the OMV Group. The purchase price paid for Dogan Holding's 54.14% stake in Petrol Ofisi A.S. amounts to EUR 499.7 mn and USD 694.6 mn. OMV has hedged the USD component. Prior to completion, Petrol Ofisi A.S. paid a dividend in Turkish Lira equal to USD 203 mn to OMV, USD 265 mn to Dogan Holding and USD 21 mn to free float shareholders. Closing of the transaction triggers a mandatory tender offer to free float investors in Petrol Ofisi which will be executed according to Turkish laws and regulations in January 2011.

This acquisition of a majority stake in Petrol Ofisi significantly strengthens OMV’s position in the Turkish market and supports OMV’s strategy of further enhancing its leading position in the European growth belt. OMV has a strong footprint in the attractive markets of Central and Southeastern Europe (CE/SEE) and with this transaction adds a leading position in the important Turkish market where OMV will further develop and roll out its successful integrated business model. The transaction is a further step in OMV’s growth strategy and aims at positioning Turkey as a third hub, besides Austria and Romania, within the integrated energy Group. In addition to the activities of Petrol Ofisi, the gas-fired power plant in Samsun (under construction) and the Nabucco gas pipeline project, Turkey represents a strategic bridgehead to the resource-rich Caspian Region and the Middle East. OMV will seek to leverage Petrol Ofisi’s position to the benefit of all its business segments.

Wolfgang Ruttenstorfer, OMV’s CEO, stated: “With the closing of this transaction we have strengthened our position as integrated market leader in Central and Southeastern Europe. We are looking forward to carrying on with the long lasting tradition and successful company history of Petrol Ofisi and will build upon this strong basis to grow all OMV business segments through our integrated business model.”

Gerhard Roiss, deputy CEO and responsible for Refining and Marketing added: “With the increase of our stake in Petrol Ofisi, we have enhanced our leading position in one of our core markets. This acquisition doubles the size of OMV’s marketing network and significantly increases our sales volumes. We are looking forward to further developing Petrol Ofisi, a solid and well-known brand in the Turkish growth market.”

OMV enjoys a strong balance sheet, with a sound liquidity position and a gearing ratio consistent with its long-term target. The transaction consideration will be initially funded with existing cash and undrawn committed credit lines.

OMV remains committed to strict capital discipline and retains the clear objective of maintaining a strong investment grade credit rating. OMV has access to the complete range of debt and equity instruments to replace part or all of the funds used for the acquisition, including an appropriate combination of equity and equity-like sources of capital. OMV anticipates executing this refinancing in the first half year of 2011.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

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