Tehran, Iran, May 30
"The Iranian Privatization Organization (IPO) held a session to review the government decision to assign its share in oil refining companies to private sector," Jafar Sobhani, the Advisor to Head of IPO, told in an interview Trend.
"IPO has approved the privatization process of government shares in 18 companies alongside setting the price," he added.
He informed that the government's shares in Lavan, Shiraz, Isfahan, Bandar Abbas, Tehran and Tabriz oil refining companies; Tejarat, Mellat and Saderat banks; Alborz insurance company and Amin Reinsurance Company; Persian Gulf Holding; National Iranian Copper Industry Co.; Mobarakeh Steel Company; SAIPA and Iran Khodro automakers; Pars Agro Industry Co; and National Iranian Investment Company are approved to be privatized.
"The shares approved by IPO will be transferred to private sector in cash. Determining the basic price is not an easy task, as it is defined by the stock market," Sobhani said.
"Moreover, setting a price for a tender is a difficult process. First, it needs to be approved by the company board members, then the Privatization Organization seeks the opinion of the official judiciary expert to determine the price, and then IPO sets the final price. The process may take from one up to three months," he noted.
"At the moment, the share will be offered in the form of block stock and in cash, but if a customer appears after the offering session, the approach may be changed," added Sobhani.
According to him, the Iranian Privatization Organization will eventually privatize these companies, but not at once. "Given that the shares of these enterprises are worth millions of dollars, offering them in the stock market simultaneously will create problems," he noted.
"The government share in five refining companies is 20 percent, 9.9 percent in Isfahan oil refining company, 17 percent in the banks, 14 percent in Iran Khodro and 17.5 percent in SAIPA automakers, 40 percent in Pars agro industry company, 13 percent in National Iranian investment, 17.5 percent in Alborz insurance and 11.5 percent in Amin reinsurance, 19 percent in Persian Gulf holding, and 17.5 percent in Mobarakeh Steel Company," he added.