OMV Divests Wholly Owned Subsidiary OMV Petrol Ofisi for Eur 1.368 Bn to Vitol Group

Source Press Release
Company OMVOMV Petrol Ofisi ASPetrobras (IFRS US$ Current)Vitol 
Tags Corporate Deals, Deals, Refining & Marketing Activities
Date March 03, 2017
  • Sale of 100% interest of OMV Petrol Ofisi to  Vitol
  • Further important step on delivering on OMV’s corporate strategy

OMV, the international integrated oil and gas company based in Vienna, has agreed to sell 100% of the shares in its wholly owned subsidiary OMV Petrol Ofisi to VIP Turkey Enerji AS, a subsidiary of  Vitol Investment Partnership Ltd.

The overall transaction value amounts to EUR 1.368 bn. Thereof EUR 81 mn relate to net cash proceeds from a prior carve-out of OMV’s Turkish gas entities. The transaction is subject to conditions, including the relevant regulatory approvals and is anticipated to close in Q3/17 at the latest.

Rainer Seele, OMV Chief Executive Officer: “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. ”

Based on the purchase price, OMV will record a further impairment of EUR 186 mn in its Q4/16 financial accounts. This booking is in addition to the impairment of EUR 148 mn recorded as of December 31, 2016 when  OMV reclassified  OMV Petrol Ofisi as "asset held for sale".

Upon closing of the transaction, a negative foreign exchange rate effect of approximately EUR 1.1 bn has to be recorded in OMV Group net income. 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.

OMV Petrol Ofisi is a leading player in the Turkish fuel distribution industry. With 1,709 fuel stations the company operates the largest retail station network in Turkey and is a leading fuels supplier to commercial and industrial customers. Total sales volume in 2016 amounted to 10.68 mn tons. In addition,  OMV Petrol Ofisi owns the largest fuel storage and logistics business in Turkey with a total storage capacity in excess of 1 mn cubic meters. The company is also the largest distributor of lubricants in Turkey.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd