Azerbaijani Ambassador to Greece clarified acquisition of DESFA shares by SOCAR

Azerbaijani and Greek governments do not discuss acquisition of 66% shares of DESFA by the State Oil Company of Azerbaijanm Azerbaijani Ambassador to Greece Rahman Mustafayev.

“Currently, the Directorate-General for Competition of the European Commission is considering the issue on privatization of DESFA. Greek government cannot interfere in this issue until this procedure ends. The document will be submitted to Athena after consideration. Thereafter, Greek government may comment on this issue”, the diplomat said.

Reminding participation of the Minister of Productive Reconstruction, Environment and Energy of Greece Panagiotis Lafazanis in the Advisory Council for the Southern Gas Corridor, the ambassador noted that the Minister as conducted constructive negotiations with Azerbaijani President Ilham Aliyev and other officials on DESFA privatization and TAP realization.

“Minister Panagiotis Lafazanis said in Baku that the new Greek government intends to extend energy cooperation with Azerbaijan”, Mustafayev said.

Earlier, the SOCAR told APA-Economics that it company continues close cooperation with the European Commission for development of mutually agreed solution in respect of taking into account the notes by the European Commission during the initial evaluation of the acquisition process.

The European Commission has stopped the hour within the formal period of consideration of the issue. This will give time for taking a decision suitable for both sides and analysis of the issue by the EC in the future.

Such temporary suspension of the process is one the simple cases in the consideration of transactions on consolidation or purchase of companies. SOCAR welcomes the progress, which has been achieved so far in the process of consideration of transaction, of which final decision is prerogative of the EC.

On July 31, 2013, the Hellenic Republic Asset Development Fund approved the transaction on purchase of 66% of DESFA shares by SOCAR for €400 mln.

In December, 2013, SOCAR and Greece`s state privatisation fund and Petroleum companies signed Contract on Shareholders and the Share Purchase Agreement (SPA).

SOCAR purchases 31% share of DESFA from Greek government, 35% from Hellenic Petroleum SA. HRADF will control share package of the DESFA prior to the SOCAR takes over control on it.

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