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SOCAR Turkey Enerji A.Åž. (STEAS), the state oil company of Azerbaijan, and its Turkish subsidiary Petkim Petrochemical Holding Corp., have granted Goldman Sachs International (GSI and affiliates) the right to negotiate on an exclusive basis an structured equity transaction with respect to 100% of its subsidiary Petlim, which entered into an agreement, in February 2014, with APM Terminals to build and operate the Aegean Gateway Terminal (AGT) near Izmir.
Under that agreement, Petkim was to provide the initial investment of approximately $400 million to construct a new container and general cargo terminal in Nemrut Bay. The new facility, expected to start operations in summer 2015, is to be fully operated by APM Terminals under a 28-year concession.
The transaction contemplated includes the sale of 30% of the shares in Petlim to Goldman Sachs for US$250 million. It is also envisaged that Goldman Sachs will receive downside protection against a devaluation of such investment with the means of put option right granted by STEAS to Goldman Sachs.
Currently, Goldman Sachs has been granted the exclusive right to negotiate the contemplated transaction that has not yet been executed. Petkim sais there is no binding agreement with respect to such structured equity transaction beyond the exclusivity.
Petkim also said the proposed transaction will be subject to customary conditions including satisfactory completion of legal due diligence, agreement on final documentation, receipt of all required internal and external approvals by STEAS, Petkim and Goldman Sachs and will further be subject to no adverse changes in market conditions.