2006/7/28@Advansa

La Seda to acquire Advansa's PET, PTA and Preform businesse

H. O. Sabanci Holding
fs subsidiary Advansa BV (Advansa) chaired by Engin Tuncay and La Seda de Barcelona, S.A. (LSB) chaired by Rafael Espanol have signed today a Share Sale and Purchase Agreement which will result in the acquisition by LSB of the PET, PTA and Preform businesses currently operating in the UK, Turkey and Romania within Advansa. Completion is subject to necessary regulatory approvals and is expected to take place by 1st October 2006.

The acquisition of Advansa
fs PET plants in UK and Turkey with combined capacity of 280 kte will result in LSB increasing its total PET capacity to around 800 kte per annum and becoming the largest producer in the European region with the broadest market coverage. It will also enhance LSBfs backward integration by adding 670 kte of PTA capacity in Wilton UK to its existing position in MEG production in Tarragona, Spain.

PET remains an exciting opportunity for growth but requires appropriate strategic development to remain successful. In this competitive global market, the challenge for all producers has been to deliver sustainable returns for their shareholders. Today
fs agreement brings together two well established and committed Polyester companies and creates a clear market leader with strong capability, knowledge and market coverage.

This acquisition will further strengthen LSB
fs cost position with the addition of PTA into its portfolio as well as extending its value chain participation. LSB remains committed to maintaining the strong external PTA sales positions, which have been developed by Advansa.

Wahid Tawfik, CEO of Advansa:
gWe are delighted to have reached agreement with LSB to acquire these businesses and we believe this transaction will result in benefits to the industry and all the stakeholders. I would like to thank all of the employees associated with these businesses for their commitment and efforts over many years and wish them every success in the future.h

Rui Vaz Sousa, PET Division CEO of LSB: gThis acquisition confirms our commitment to the PET industry and will result in the consolidation of our leadership position as number one PET producer in the European region. We look forward to welcoming all our new colleagues and we are sure that the combined talents of our companies will result in a strong and successful business focused on meeting the current and future needs of our customers in terms of quality, service and innovation.h

In this transaction Advansa has been advised by ABN Amro and LSB has been advised by Espirito Santo Investment.


2006/5/17@AFX News

La Seda still studying PET acquisitions in Europe; no decision on Advansa

La Seda de Barcelona SA said it is still studying growth through acquisitions in the European polyethylene terephthalate (PET) sector, but has yet to make a decision on Turkish PET producer Advansa.
Commenting on a report in Expansion, a spokeswoman for the Spanish chemicals group said: 'We have various projects on the table, but we haven't made a binding decision.'
Earlier, Expansion said La Seda could acquire Advansa for 300 mln eur within the next few days.
The acquisition would make the company European leader in PET plastic, with annual production of 809,000 tonnes and sales of over 1 bln eur, the newspaper said.

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2006/8/14 Platts

Turkey's Sanko announces plans for petrochemical plant at Ceyhan

Turkey's Sanko Holding conglomerate was developing plans to construct an oil refinery and petrochemical complex close to Turkey's Mediterranean oil port of Ceyhan, Turkey's state owned news agency Nadolu Ajans reported Monday, in an interview with Sanko chairman Abdulkadir Konukolu.
The agency reported that Sanko already owned a 1.1-mil sq m site in the Ceyhan region and was ready to conduct talks with international majors with a view to forming a consortium to pursue the project.
A proposal from Russia's TNK had already been rejected, he said, without giving any details of the planned capacity or complexity of the plant under consideration.
Turkish officials had long been pushing the idea of the establishment of an new petrochemical plant at Ceyhan.
In 2003 Sanko formed a consortium with Turkey's Zorlu to bid in the sale of a controlling stake in state petrochemical firm Petkim, a sale which was later cancelled.

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Sanko Group@http://www.sanko.com.tr/eng/default.asp

Sanko Group, which started its operations with a simple hand-loom in 1904, is continuing its business activities with the same energy and confidence of the first day. Sanko has been actively involved in textile business for five generations. Since the beginning of the 1990s , Sanko group has diversified its bussiness areas in both the national and international platforms. Today, the group consists of many companies and employs over 14,000 people. The companies are active in textile, construction, finance, packaging, energy, food, automotive, white-goods, climatization, information technology, health care and education areas.

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2007/7/5 AFX News

Kazakh consortium wins auction for 51 pct of Turkey's Petkim

Kazakhstan-based consortium
Transcentralasia Petrochemical Holding won the auction for 51 pct of Turkish petrochemical company Petkim with a bid of 2.05 bln usd.

A spokesman for the winning consortium, Haluk Recai Ulusoy, said: 'Transcentralasia plans very large investments in energy,' without giving further details.

The auction must still be ratified by the body supervising the auction.

In
June 2003, Turkey auctioned off 88.86 pct of the company to the controversial Uzan family empire for 605 mln usd, but cancelled the sell-off two months later after the Uzans failed to fulfil the required conditions amid financial difficulties.

A second tender in
August 2003 for the block sale of 88.86 pct failed because of lack of investor interest.

In
April 2005, 34.5 pct of the company's shares were sold to Turkish and foreign investors in a public offering that raised 267 mln usd.

Petkim controls one-third of the petrochemicals market in Turkey and employs about 4,000 people. Its net profit in 2006 was 40 mln usd.


Platts 2007/7/6

Russian bank Troika leads $2.05 billion purchase of Petkim stake

Russian private equity firm Troika Capital Partners is one of three investors behind Thursday's buyout of Turkish state petrochemical company Petkim, according to a statement from Troika Dialog, its parent company.

The other investors in
Trans Central Asia Petrochemical Holding--the consortium behind the $2.05 billion purchase of a 51% stake in Petkim--are oil company Caspi Neft and investment firm Evrazia, the statement said.

According to Russian business daily Vedomosti,
Caspi Neft is a full subsidiary of US-based Transmeridian Exploration, which has operations in Central Asia.

Evrazia manages investments in Turkey for Russian and Kazakh investors, according to Troika's statement. Founded by Mukhmar Ablyazov, its main businesses are power generation and real estate, Vedomosti said.

The head of Troika Capital Partners, Sergei Skvortsov, told Vedomosti that Troika is the main investor in the group. A spokeswoman for the bank declined to say what Troika's holding in the consortium is.

Skvortsov also told the paper
Troika Capital Partners plans to exit in between four to six years. The new owners are locked in for three years under the terms of the sale, he said.

Transmeridian Exploration Incorporated is an independent energy company established to acquire and develop identified and underdeveloped oil reserves in the region around the Caspian Sea.

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Platts 2007/10/31

Turkish court rejects attempt by trade union to halt Petkim sale

Turkey's highest court, the Danistay, has rejected an application by the Petrol Is trade union to halt the sale of the 51% controlling stake in Petkim, Turkey's dominant petrochemicals producer, on the grounds that the advertising for the tender was in breach of privatization regulations.

A spokesman for Petrol Is confirmed to Platts Wednesday that the case had been rejected by the court Tuesday but explained that the union still had a second case pending which was filed after the tender was completed in July.
That case called for the sale to be halted as it was "against the national interest", and is still ongoing, he explained.

Petrol Is, which represents the bulk of employees at both Petkim and the former state oil refiner Tupras, which was privatized last year, has for some years been actively engaged in legal actions to halt privatization of the two companies.

In 2003 the union was successful at halting the sale of a controlling stake in Tupras to a Turkish-Russian consortium, while last year it succeeded in getting a ruling calling for the reversal of the sale in 2005 of 14.76% of Tupras stock to an Israeli businessman--a ruling analysts contend is unenforceable as the stock has long since been traded. However, the union last year failed in its attempt to stop the sale of a 51% controlling stake in Tupras to a consortium of Turkey's Koc Holding (98%) and Shell (2%).

The tender for the sale of 51% of Petkim was completed in July with the winning bid of $2.05 billion being submitted by
Kazakh-Russian investment company, Trans Central Asia Petrochemical Holding, controlled by a US businessman of Armenian extraction, Ruben Vardanyan.

Earlier this month the OIB announced that Turkey's Higher Privatization Council (OYK), a body consisting of the Prime Minister, senior ministers and bureaucrats, had decided to award the tender
to the second highest bidder, a consortium of Turkish petroleum distributor Turcas, Azeri state oil company Socar and Saudi Injazz projects, which bid $2.04 billion. No reason for the change was given but Turkish commentators have noted that the announcement was made only days after the US House Foreign Affairs Committee voted to forward a motion to congress recognizing the killing of Armenians in the Ottoman Empire in the latter stages of World War I as genocide--a move which has caused some disquiet in Turkey.

The sale of 51% of Petkim to the Turcas-Socar-Injaz consortium now has only to be ratified by Turkey's competition board before it can be given the final go ahead, an approval that is expected to be issued within the next two weeks.