SOCAR to decide to buy Turkish construction company share in Sept
Azerbaijan, Baku, April 11 / Trend , E. Ismayilov/
The decision to continue talks or cancel agreement on SOCAR's acquisition of 50 percent of Tekfen Insaat (part of Tekfen Holding) share together with Palmali will be adopted in autumn, Reuters reported Tekfen Holding head Erkhan Oner as saying.
Oner said the talks will be frozen until Sept. until sides decide to continue talks or refuse a deal.
The SOCAR postponed talks on buying Tekfen Inshaar share in Jan. due to unstable economic situation and sharp fall in oil prices, Reuters reported.
Earlier, the sides signed agreement, but contract on acquisition of shares has not been signed yet. The value of the contract is $520 million.
SOCAR may examine an issue with Palmali company to purchase 50-percent shares of the Turkish Tekfen Insaat construction company by late 2009, SOCAR Head Rovnag Abdullayev said earlier.
"It is risky to purchase a construction company under the crisis conditions," Abdullayev said. "Therefore, this program has been postponed."
This alliance will enable to provide Tekfen Insaat with work worth $37 billion within five years. They will include construction in oil field all over the world. Tekfen Groups will construct oil refineries and petrochemical facilities.
Palmali invests in food, construction sector, health, tourism, air transportation and media. Palmali possesses considerable tanker fleet and intends to invest $1.3 billion in its expansion in future.
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