Goldman Sachs, SOCAR becomes Partner of Turkey with 13 percent

Goldman Sachs (GS) and  together with JP Morgan (JPM) ; Goldman Sachs International (with their participation ‘GS’), against 1,3 billion USD (premium to the current value), State Oil Company of the Azerbaijan Republic (SOCAR) (Oil Company of Azerbaijan Republic) their corporation with our main partner SOCAR Turkey Enerji A.Ş. (STEAŞ) (after increasing) 13% against the total capital 890,6 million pieces of shares, by taking the new ordinary share  (‘share’) and as security of GS against the decrease of the value of the shares to 1,3 billion USD in the same time a transaction was structured of a purchase option of 6 years relating to the STEAŞ and SOCAR partnership to Sermaye Investments Limited (‘SIL’) .

The application of the sale option with STEAŞ; STEAŞ will sale independent from the purchase date the 10% equal to approximately 685,1 million shares for the assigned value.

 

 

 

The application of the sale right with SIL, the 3% of the total shares, approx. equal to 205,5 million shares, if the sale price will be lower than 1 billion USD in the scope of 300 million USD and over of the STEAŞ sale option, the difference will be calculated in USD and added to the purchase price. Before using the sale option SIL will be absorb a Premium.

SIL will also guarantee its obligations under the STEAŞ sale option.

 

The sale option of SIL and to fulfil the obligations in the scope of the guarantee to the sale option of STEAŞ, SOCAR has undertaken to put a capital of maximum 1, 3 billion USD to SIL.

 

 

 

The sale option of GS, STAEŞ and SIL in the scope of the undertaking of SOCAR will eliminate the risk of the credit exposure. Related to the elimination of the risk; the shares of GS, sale options and the protection of the rights in the scope of the undertaking of SOCAR, in favour of GS and JPM, ultimate investors have configured a debt related to the credit.

GS and JPM will keep the debts at the beginning and can increase or decrease the debts during the transaction.

Additional incomings sourced from the sale of shares

The additional incomings sourced from the sale of the shares will be shared proportionally between SIL and the debt owners.