Iranian government to assign shares of 6 oil refineries to private sector

Business Materials 8 July 2019 13:15 (UTC +04:00)

Tehran, Iran, July 8


The Iranian government is expected to assign its shares of six oil refineries to private sector in near future, while the Iranian Privatization Organization (IPO) will follow the process.

Mohammad Jafar Sobhan, the advisor of the IPO's head, discussed the latest situation on the assignment of government shares in 18 companies in an interview with Trend .

"The privatization board has approved that the rest of government shares in 18 companies will be assigned to private sector gradually," he noted.

"The list of companies include six oil refineries: Tehran Oil Refining Company, Lavan Oil Refinery Company, Tabriz Oil Refining Company, Shiraz Oil Refining Company, Bandar Abbas Oil Refining Company and Isfahan Oil Refining Company, alongside three banks: Saderat Bank , Mellat Bank and Tejarat Bank plus two insurance companies, namely Alborz Insurance Company and Amin reinsurance," he said.

"Other companies are Persian Gulf Petrochemical Industries Company, Iran National Copper Company, Mobarakeh Steel Company, Pars Organic Company and National Iranian Investment Company," he added.

"IPO is obligated to observe the process to avoid sudden sale of shares in capital market and possible tensions. So far, tender ads have been issued twice about the assignments," he noted.

"The government shares in Alborz Insurance Company are 17.34 percent, and it is expected that shares of the insurance company valued about $26 million will be offered at stock exchange on August 13," he said referring to the process of offering shares.

"Setting the price for government shares in six oil refineries has been completed and the tender notice has been released alongside tenders for offering session at stock exchange," he added.

"The government shares 20 percent of Isfahan Oil Refining Company that will be offered at OTC stock exchange with value of $1.142 billion on July 31," he said. "Shares of Bandar Abbas Oil Refining Company of $1.119 billion worth will be offered in stock exchange and the tender ad will be issued in next two days."

"Twenty percent of the government shares in Tehran Oil Refining Company with value of $952 million will be offered on July 31," he added. "Shares of Tabriz Oil Refining Company will be offered at the exchange with value of $500 million, but the tender date has not been announced so far."

"The government shares in Shiraz Oil Refining Company worth $173 million will be offered on July 15, while its shares in Lavan Oil Refining Company with value of $157 million will be traded on July 16," he said.

"The assignment of the re-branding 11 companies is in the process of evaluation and the tender notice will be released soon. The offering of shares should be executed one by one, so it will not intensify the market, "he said.

"The evaluated price for the shares of the 18 companies is $12 billion. As forecasted, the amount will be assigned in block share to sell in cash at one offering. The value of seven companies that currently planned to be offered is $4.7 billion," he added.