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OMV closes acquisition of 54.14% in Petrol Ofisi

  • Closing of purchase transaction
  • OMV becomes clear majority shareholder in one of the leading companies in the Turkish oil products retail and commercial business
  • Strong basis for further integrated growth within Turkey
  • OMV remains committed to maintaining a strong investment grade credit rating

Today, on December 22, 2010, OMV, the leading energy Group in the European growth belt, completed the acquisition of a 54.14% stake in Petrol Ofisi A.S., one of the leading companies in the Turkish oil products retail and commercial markets following the approval of the transaction by the relevant authorities including anti-trust clearance (refer to EANS ad hoc announcement of October 22, 2010). With this transaction OMV increases its stake in Petrol Ofisi from 41.58% to 95.72%, thereby fully consolidating the company within the OMV Group. The purchase price paid today for Doğan Holding's 54.14% stake in Petrol Ofisi A.S. amounts to EUR 499.7 mn and USD 694.6 mn. OMV has hedged the USD component. Prior to completion, Petrol Ofisi A.S. paid a dividend in Turkish Lira equal to USD 203 mn to OMV, USD 265 mn to Doğan Holding and USD 21 mn to free float shareholders. Closing of the transaction triggers a mandatory tender offer to free float investors in Petrol Ofisi which will be executed according to Turkish laws and regulations in January 2011.

This acquisition of a majority stake in Petrol Ofisi significantly strengthens OMV’s position in the Turkish market and supports OMV’s strategy of further enhancing its leading position in the European growth belt. OMV has a strong footprint in the attractive markets of Central and Southeastern Europe (CE/SEE) and with this transaction adds a leading position in the important Turkish market where OMV will further develop and roll out its successful integrated business model. The transaction is a further step in OMV’s growth strategy and aims at positioning Turkey as a third hub, besides Austria and Romania, within the integrated energy Group. In addition to the activities of Petrol Ofisi, the gas-fired power plant in Samsun (under construction) and the Nabucco gas pipeline project, Turkey represents a strategic bridgehead to the resource-rich Caspian Region and the Middle East. OMV will seek to leverage Petrol Ofisi’s position to the benefit of all its business segments.

Wolfgang Ruttenstorfer, OMV’s CEO, stated: "With the closing of this transaction we have strengthened our position as integrated market leader in Central and Southeastern Europe. We are looking forward to carrying on with the long lasting tradition and successful company history of Petrol Ofisi and will build upon this strong basis to grow all OMV business segments through our integrated business model."

Gerhard Roiss, deputy CEO and responsible for Refining and Marketing added: "With the increase of our stake in Petrol Ofisi, we have enhanced our leading position in one of our core markets. This acquisition doubles the size of OMV’s marketing network and significantly increases our sales volumes. We are now looking forward to further developing Petrol Ofisi, a solid and well-known brand in the Turkish growth market." OMV enjoys a strong balance sheet, with a sound liquidity position and a gearing ratio consistent with its long-term target. The transaction consideration will be initially funded with existing cash and undrawn committed credit lines.

OMV remains committed to strict capital discipline and retains the clear objective of maintaining a strong investment grade credit rating. OMV has access to the complete range of debt and equity instruments to replace part or all of the funds used for the acquisition, including an appropriate combination of equity and equity-like sources of capital. OMV currently anticipates executing this refinancing in the first half year of 2011.

Background information:
With Group sales of EUR 17.92 bn and a workforce of 34,676 employees in 2009, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. As the leading energy Group in the European growth belt, OMV is active in Refining & Marketing (R&M) in 12 countries. In Exploration & Production (E&P) OMV is active in 16 countries on four continents. In Gas & Power (G&P) OMV sells approximately 13 bcm gas per year. Through its 2,000 km long gas pipeline network in Austria G&P transports approximately 75 bcm gas annually. OMV’s Central European Gas Hub is with around 23 bcm annual trading volume one of the most important gas hubs in Continental Europe.

OMV is the leading energy Group in the European growth belt with oil and gas reserves of approximately 1.19 bn boe, daily production of around 316,000 boe in Q3/10 and an annual refining capacity of approximately 26 mn t. OMV now has 2,310 filling stations as of Q3/10. The market share of the group in the R&M business segment in the Danube Region is now 20%.

OMV further strengthened its leading position in the European growth belt through the acquisition of a stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.

Under its 3plus strategy, OMV combines the strengths of its E&P, G&P and R&M business units in order to ensure that it provides the best possible supply service to its three core markets of Central and Eastern Europe, Southeast Europe and Turkey. OMV uses the synergies that result from the combination of these strengths to extend its supply chain from oil and gas through to electricity and eventually renewable energy.

Sustainability
OMV is a signatory to the UN Global Compact, and an active supporter to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment, especially in economically weak regions. OMV continuously addresses economic, environmental and social issues related to its business in a responsible manner. The Company reports on its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines. This report is published at the same time as the annual report.

Next result announcement: January–December and Q4 2010 on February 23, 2011