Austria's OMV Looks to Sell Turkish Unit Petrol Ofisi

 

OMV is focusing on growth in its upstream business, which covers crude oil and natural gas production, and its integrated downstream business, covering refining, sales and distribution.

 

Petrol Ofisi, with its retail station network, no longer fits this strategy, the company said.

 

OMV made no comment on the price it is seeking for the unit.

 

It was not yet in talks with potential buyers nor had it received any expressions of interest for the business, a spokesman said. It could take 12 to 18 months until a deal was closed, he added.

 

Central Europe's biggest energy group has held a stake in Petrol Ofisi since 2006, when it bought 34 percent of the former state-owned company for $1.06 billion.

 

It acquired a further 54 percent in the group in 2010 for $1.4 billion, and has since raised its stake to 96 percent.

 

It said it was in the process of selecting advisors to sell the unit, which operates nearly 1,800 petrol stations in Turkey and last year generated sales of around 10 billion euros.

 

In past deals, OMV's top advisors have included JP Morgan and Deutsche Bank. Law firm Dentons advised the group on the 2010 deal for Ofisi.

 

The sale could attract institutional investors seeking energy infrastructure assets across Europe, after a consortium led by Allianz paid 3.5 billion for German service station group Tank&Rast last year.

 

Like its rivals, OMV has had to cope with slumping oil prices. It was forced to write down around 2.8 billion euros last year, outweighing 2014's headline operating profit of 2.2 billion euros.

 

Chief executive Rainer Seele plans to unveil OMV's latest strategy on February 18, which analysts hope will shed light on investment plans and expansion projects. They are also awaiting more details on a planned asset-swap with Russia.

 

OMV has slashed ambitious investment plans in recent months, and analysts expect they will have to cut them further.