The Investment Company of Oil, Gas, and Petrochemical Supply (TAPIKO) will offer a control block of 53.09% of the shares of Abadan Petrochemical, trading under the symbol "SHPETRO", on November 17, 2023, in the OTC market. This block includes 5 billion 309 million 743 thousand and 842 shares of Abadan Petrochemical, which will be offered in bulk and cash on the yellow board of the OTC market under the trading symbol "SHPETRO4".
Details of the Transfer and Purchase Conditions
The base price for each share of Abadan Petrochemical has been set at 7,728 rials, and the total base value of the transaction exceeds 4 trillion and 103 billion tomans. According to the announced conditions, applicants wishing to purchase this block must submit the required documents and an amount equivalent to 10% of the base value of the transaction by November 7. Additionally, the final buyer is obliged to settle the transaction amount within two working days.
Various Aspects of the Transfer
This transfer can be examined from three important angles. First, the legal requirements of the Seventh Development Plan for the transfer of managerial and controlling shares of enterprises owned by non-governmental public institutions and pension funds; second, the specialization of TAPIKO's investment portfolio and increased focus on higher-yielding activities; and third, the exit of Abadan Petrochemical from the holding portfolio that has limited chain connections with its activities and its potential transfer to a group that is more aligned in terms of feedstock supply and value chain completion.
TAPIKO's action in transferring Abadan Petrochemical is specifically related to the legal obligations outlined in the Seventh Development Plan. Article 5 of this law specifies certain provisions for the transfer of company shares with the aim of popularizing the economy, increasing private sector participation, and reducing government and non-governmental public institution involvement.
According to Clause 2 of Section "A" of Article 5 of the Seventh Development Plan, public and non-governmental institutions, as well as all pension funds, are obliged to transfer their managerial or controlling shares and those of their owned companies by the end of the second year of the plan. This planning aims to create a dynamic and efficient economic environment for the country.
