ECONOMY
SOCAR to acquire DESFA through public funds
Baku, September 17 (AZERTAC). The State Oil Company of Azerbaijan SOCAR has announced that it will acquire the Greek natural gas transmission network operator DESFA through public funds.
The governing board of the Greek state privatization fund TAIPED approved the Azerbaijani company`s revised offer for a 66 percent stake of DESFA in early August.
SOCAR Vice-President Suleyman Gasimov said that the acquisition of the DESFA assets for 400 million euros will be ensured by an increase of SOCAR`s capital.
"DESFA is very attractive as an investment project. We believe that the profitability of the project will be satisfactory for both SOCAR and for the state," Gasimov said.
SOCAR offered 400 million euros for the purchase of 66 percent of shares, including 31 percent of the shares owned by the Greek state privatization fund and 35 percent of Hellenic Petroleum`s stock.
A final decision of the European Commission on the transfer to SOCAR`s control of the 66 percent stake in DESFA will be carried out in the second quarter of 2014.
The Hellenic Republic Assets Development Fund (HRADF) will have the control over the sold part of the shares till the end of the transfer, that is, the seller will retain control over DESFA till the end of 2014.