In a material disclosure dated 24 January 2006, Doğan Holding announced that preliminary discussions had started with OMV, the leading oil and gas company in Central Europe, on strategic cooperation, on the distribution and supply of oil and gas products, including refineries, oil exploration and oil production.
As a result of these discussions, Doğan Şirketler Grubu Holding A.Ş. and OMV have agreed on the sale of 34% of Petrol Ofisi A.Ş. shares to OMV. The total sale price of the shares to be transferred is USD 1,054,000,000, which will be paid to Doğan Şirketler Grubu Holding A.Ş. in cash. According to applicable legislation which is binding on both parties, the agreement signed with OMV on 13 March 2006 is subject to the approval of the relevant official authorities. At the end of the proposed sale transaction, the direct interest of Doğan Şirketler Grubu Holding A.Ş. in Petrol Ofisi will fall from 86.7% to 52.7%.
The agreement foresees a management structure based on equal partnership with OMV: Four members of the company's eight-member Board of Directors will be assigned by Doğan Şirketler Grubu Holding A.Ş., and the other four members by OMV. The Chairperson of the Board will be assigned by Doğan Şirketler Grubu Holding A.Ş., and the Vice-Chair by OMV.
With this partnership, the prime concern of Doğan Holding was to obtain the cooperation of a partner devoted to the business at hand and does not refrain from making further investments to grow the business.
With the leading position of OMV in the Central European market and its extensive experience in the fields of oil production and refining, this partnership would contribute to strengthen the position of Petrol Ofisi; and with the additional areas of refining, oil exploration and production, the company would be transformed into a major player in the energy market. This agreement constituted a great opportunity not only for POAŞ, but also for Turkey, propelling the country to a new level.