OPPOSITION SLAMS GOV’T ON PETKIM SALE
Turkish Daily News, Turkey
July 9, 2007 Monday
Opposition parties accused the government of selling the majority stake
in Petkim, Turkey’s strategic petrochemicals giant, to a Russian-Kazakh
consortium whose owners are as yet unknown.
"If elected, the Republican People’s Party (CHP) will stop the selling
process", the CHP’s Deniz Baykal said Saturday during his election
campaign in Adiyaman.
A consortium of Kazakh and Russian companies on Thursday made the
highest bid to buy a 51 percent stake in Petkim. TransCentralAsia
Petrochemical Holding, a Kazakh-dominated group, agreed to pay $2.05
billion for the company, in a televised tender. The consortium outbid
seven other conglomerates.
The criticism leveled at the government increased when media discovered
the owner of the Russian member of the consortium, Troika Dialogue,
is an Armenian Ruben Vardarian who actively works for the recognition
of Armenian genocide claims during the Ottoman Empire.
The consortium later said it would take on new Turkish and Kazakh
partners to buy the Turkish petrochemical firm in a move to reduce
the critical approach toward them.
CHP to stop the process
However the political parties here, already facing a tense climate
ahead of the general elections, seem not to reduce the criticism aimed
at the government. Baykal, addressing his electorate in Adiyaman,
underlined that the buyers are really not known adding, "Petkim is
very important to Turkey. We don’t know who bought it. The seller
is known but the buyer is not." Emphasizing that the government sold
almost all institutions that make up Turkey’s economic infrastructure
Baykal noted, "I announce that, if elected, the CHP will stop Petkim’s
last minute sale."
Bahceli in similar mood
Devlet Bahceli, leader of the Nationalist Movement Party (MHP), during
his election campaign in Konya, criticized the AKP for speeding up
Petkim’s sale before the elections. "Is it moral. There are elections
15 days later."
Bahceli argued that one of the buyers is also the financer of the
Armenian Diaspora saying, "How can you sell Petkim to those who accuse
Turkey of committing genocide?"
Fitch: Petkim on negative watch
Meanwhile, international Fitch Ratings said Saturday it has put
its ratings on Turkey-based Petkim Petrokimya Holding AS on negative
watch on concerns that the sale of 51 percent of Petkim by the Turkish
Privatization Administration to TransCentralAsia Petrochemical Holding
for $2.05 billion may negatively affect its credit profile.
Fitch has long-term local and foreign currency issuer default
ratings of ‘BB’ and national long-term rating of ‘AA (tur)’ on the
petrochemicals company. Fitch said TransCentralAsia Petrochemical
Holding is likely to depend on Petkim’s cash flow to service the
acquisition debt.