News: IndianOil eyes Turkey Petkim stake

(DNA 20/04/2007) Mumbai - Indian Oil Corporation plans to bid for a majority stake in state-owned Turkish petrochemicals company Petkim. The Turkish government has announced the disinvestment of its 51% stake in the company.

IndianOil is likely to tie up with Calik Enerji of Turkey for the bidding process.

BM Bansal, director (planning and business development), IndianOil, told DNA Money that they were examining the feasibility of the sale and a decision would be taken only if it is found viable.

"We are examining the condition of the plant and the economic viability," he said.

Petkim stock is currently held by Privatisation Administration (88.86%) and the Turkish Pension Fund (7%). Privatisation Administration now wants to sell 51% of the shares to a strategic partner under a block sale.

The Turkish government had twice cancelled the bidding process for Petkim, which accounts for 35% of Turkey's chemical production, as the bid price did not meet the desired level. The privatisation attempt has been on since 2001.

On other projects in Turkey, Bansal said the ground-breaking ceremony for the 660-km Samsun-Ceyhan pipeline would be held on April 24.