[CONSOLIDATION_METHOD_TITLE] [CONSOLIDATION_METHOD]
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English
oda_NoncurrentFinancialAssetAcquisitionAbstract|
Noncurrent Financial Asset Acquisition
oda_UpdateAnnouncementFlag|
Update Notification Flag
Hayır (No)
oda_CorrectionAnnouncementFlag|
Correction Notification Flag
Hayır (No)
oda_DateOfThePreviousNotificationAboutTheSameSubject|
Date Of The Previous Notification About The Same Subject
-
oda_DelayedAnnouncementFlag|
Postponed Notification Flag
Hayır (No)
oda_AnnouncementContentSection|
Announcement Content
oda_BoardDecisionDateForAcquisition|
Board Decision Date for Acquisition
05/12/2019
oda_WereMajorityOfIndependentBoardMembersApprovedTheBoardDecisionForAcquisition|
Were Majority of Independent Board Members' Approved the Board Decision for Acquisition
Yes
oda_TitleOfNoncurrentFinancialAssetAcquired|
Title of Non-current Financial Asset Acquired
SOCAR Polymer Investments LLC
oda_FieldOfActivityNoncurrentFinancialAssetWhoseSharesWereAcquired|
Field of Activity of Non-current Financial Asset whose Shares were being Acquired
Production and sales of Polypropylene and HDPE
oda_CapitalOfNoncurrentFinancialAsset|
Capital of Noncurrent Financial Asset
USD375,000,000
oda_AcquirementWay|
Acquirement Way
Satın Alma (Purchase)
oda_DateOnWhichTheTransactionWasWillBeCompleted|
Date on which the Transaction was/will be Completed
After the completion of required approvals
oda_AcquisitionConditions|
Acquisition Conditions
Peşin (Cash)
oda_DetailedConditionsIfItIsATimedPayment|
Detailed Conditions if it is a Timed Payment
-
oda_NominalValueOfSharesAcquired|
Nominal Value of Shares Acquired
USD 37,500,000
oda_PurchasePricePerShare|
Purchase Price Per Share
USD 2.667 per USD1.00 nominal value share
oda_TotalPurchasingValue|
Total Purchasing Value
USD 100,000,000
oda_RatioOfNewSharesAcquiredToCapitalOfNoncurrentFinancialAsset|
Ratio of New Shares Acquired to Capital of Non-current Financial Asset (%)
10%
oda_TotalRatioOfSharesOwnedInCapitalOfNoncurrentFinancialAssetAfterTransaction|
Total Ratio of Shares Owned in Capital of Non-current Financial Asset After Transaction (%)
10%
oda_TotalVotingRightRatioOwnedInNoncurrentFinancialAssetAfterTransaction|
Total Voting Right Ratio Owned in Non-current Financial Asset After Transaction (%)
10%
oda_RatioOfNoncurrentFinancialAssetAcquiredToTotalAssetsInLatestDisclosedFinancialStatementsOfCompany|
Ratio of Non-current Financial Asset Acquired to Total Assets in Latest Disclosed Financial Statements of Company (%)
4.73%
oda_RatioOfTransactionValueToSalesInLatestAnnualFinancialStatementsOfCompany|
Ratio of Transaction Value to Sales in Latest Annual Financial Statements of Company (%)
4.76%
oda_EffectsOnCompanyOperations|
Effects on Company Operations
Financial investment in a petrochemical company
oda_DidTakeoverBidObligationArised|
Did Takeover Bid Obligation Arised?
Hayır (No)
oda_WillExemptionApplicationBeMadeIfTakeoverBidObligationArised|
Will Exemption Application be Made, if Takeover Bid Obligation Arised?
Hayır (No)
oda_TitleNameSurnameOfCounterParty|
Title/ Name-Surname of Counter Party
Pasha Holding LLC (5%) and SOCAR Overseas Ltd. (5%); 10% in total
oda_IsCounterPartyARelatedPartyAccordingToCMBRegulations|
Is Counter Party a Related Party According to CMB Regulations?
Hayır (No)
oda_RelationWithCounterPartyIfAny|
Relation with Counter Party if any
-
oda_AgreementSigningDateIfExists|
Agreement Signing Date if Exists
13/12/2019
oda_ValueDeterminationMethodOfNoncurrentFinancialAsset|
Value Determination Method of Non-current Financial Asset
Negotiation based on price determined by Valuation Report
oda_DidValuationReportBePrepared|
Did Valuation Report be Prepared?
Düzenlendi (Prepared)
oda_ReasonForNotPreparingValuationReportIfItWasNotPrepared|
Reason for not Preparing Valuation Report if it was not Prepared
-
oda_DateAndNumberOfValuationReport|
Date and Number of Valuation Report
June 30,2019
oda_TitleOfValuationCompanyPreparedReport|
Title of Valuation Company Prepared Report
Pricewaterhouse Coopers Eastern Europe B.V. Azerbaijan Branch
oda_ValueDeterminedInValuationReportIfExists|
Value Determined in Valuation Report if Exists
USD 1,169,035,000
oda_ReasonsIfTransactionWasntWillNotBePerformedInAccordanceWithValuationReport|
Reasons if Transaction wasn't/will not be performed in Accordance with Valuation Report
-
oda_ExplanationSection|
Explanations
oda_ExplanationTextBlock|

TechInvestments LLC, a subsidiary of our Company, acquired a 10% stake in SOCAR Polymer Investments LLC with a paid-in capital of US$ 375 million.

SOCAR Polymer Investments LLC owns 100% of the petrochemical company SOCAR Polymer LLC (SOCAR Polymer). Polypropylene unit with an annual capacity of 184 thousand tons was put into operation in September 2018 and the High Density Polyethylene (HDPE) unit with an annual capacity of 120 thousand tons was put into operation in 2019. Starting in 2020, SOCAR Polymer operating at full capacity, has set Turkey, Azerbaijan Western and Central Europe and Russia as target markets.

SOCAR Polymer, whose total investment size is USD820 million, with the projected product prices applied, is expected to reach sales revenue of around USD 400 million and profit before interest, depreciation and tax (EBITDA) of around USD 200 million in 2020 and onwards after the plants start operating at full capacity.