TAIF takes control of largest fuel retailer of Tatarstan
Included in the petrochemical holding, Telecom-Management purchased 49% of Tatnefteproduct shares
Today there have been signed documents that confirm the affiliation of the Tatnefteproduct to the holding in the head office of the TAIF Group of Companies. The sum of the deal has not been made public. Realnoe Vremya found out that the current shareholder of the fuel sector Svyazinvestneftekhim is going to channel proceeds from the deal to the construction of the Kazan Expo exhibition centre. The TAIF GC, in turn, plans a modernization of Tatnefteproduct for the next 15 years.
Interests of the three parts taken into account
Today in the meeting area of the parent company TAIF PJSC there are three directors: Valery Sorokin, the director general of Svyazinvestneftekhim, Rustam Sabirov, the director general of the Tatnefteproduct Holding Company PJSC, and Albert Shigabutdinov, the director general of TAIF PJSC. They signed a document that confirms a purchase by TAIF of 49% of Tatnefteproduct shares. 'Today's event is significant. The three directors decided that the deal would be beneficial for all: for Svyazinvestneftekhim, as well as for Tatnefteproduct (TNP) and TAIF. What is more, it will have a positive impact on the republic. The deal is made for 100% fuel provision of the people of Tatarstan. Now the long negotiations left behind, and interests of the three parts are taken into account,' Albert Shigabutdinov noted during the signing of the documents.
It should be noted that in June 2015 the Federal Antimonopoly Agency of the Russian Federation approved the request of Telecom-Management (a 100% subsidiary of the TAIF PJSC) on the purchase of 59,85% of the voting shares of Tatnefteproduct. From now and during 35 days, according to the requirements of the legislation, all shareholders will get offers to buy the rest of the shares. Depending on the shareholders' desire, it is possible that the holding purchases the shares of Tatnefteproduct in their entirety.
It's necessary to specify that before the signing the deal, Svyazinvestneftekhim PJSC (34,2%), Telecom-Management PLC (21,79%) and TAIF PJSC (15,05%) were shareholders of Tatneftproduct. While Chulpan and Compania Limited Partnership Business Entity reduced its block of shares from 25,24% to 0,44% after a couple of days when Rustam Sabirov, the director general of Tatnefteproduct, purchased 17,9% of common stock of the company.
At this moment, the block of shares of Telecom-Management equal to 70,79%, including the block of the TAIF head company the petrochemical holding owns 85,84%.
After the signing, Valeriy Sorokin noted that for Svyazinvestneftekhim the sale of shares of TNP is a financing. 'Resources will be channeled to big infrastructural projects first; it's a specialization of our company. Particularly, to tell the truth, it is a new exhibition centre on a big territory, which will be located near the airport of Kazan. The total area of the establishments is about 80 ha,' Valeriy Sorokin explained but didn't reveal the cost of the deal. 'The conditions of the agreement state that we can't make it public. As a rule, we never comment it,' Sorokin added.
Ten years near TAIF
Realnoe Vremya asked Rustam Sabirov about their further plans of development of the company with their new owner. He said that the Tatnefteproduct Holding Company had been having its foot in the TAIF GC for 20 years. 'They were our shareholders. Now we completely join the Group of Companies. I suppose it'll be for the good of the company.'
As for a question whether 162 petrol stations of Tatnefteproduct would develop under the brand of TAIF-NK, an subsidiary company of TAIF, Sabirov diplomatically answered that, 'The decision hasn't been made yet. Our brand is good too. It's necessary to develop both of them.'
Albert Shigabutinov answered the same question saying that they already have been offered to develop the both of the brands. A new compromise solution to the development of Tatnefteproduct and TAIF will be found. It's appropriate to mention that TAIF-NK owns 44 petrol stations. Nowadays Tatnefteproduct has a powerful logistical base which unites water and auto transport, petroleum base on the territory of Tatarstan. However, the main property fund is out of date. 'Everything related to TAIF develops and modernizes. We have the same approach to Tatnefteproduct. Rustam Sabirov has great development plans that make us happy. So, we'll obtain a synergistic effect,' said Albert Shigabutdinov.
'Now there will be the shortest way between petrochemical factories and petrol station on the territory of the republic. As for the price, it must play a major role for the people of Tatarstan. The best quality petrol will have an optimal low price,' he concluded.
After the signing of the documents, the major shareholder and the fuel operator sat down to talk about the updated development programme of TNP for the next 15 years.