DMEA: Iranian government sells 12% stake in country’s largest petchem producer

Iran’s government has reportedly sold 12% of the country’s largest petrochemical producer, Persian Gulf Petrochemical Industries (PGPIC), to a unit of the country’s oil pension fund for IRR1.087 quadrillion ($3.3bn at the free market rate), a privatisation record.

“Moments ago, stocks of this company were sold for a total price of 1,087 trillion rial. It was the largest privatisation scheme ever conducted in the country’s history,” Hossein Ghorbanzade, who heads Iran’s Privatisation Organisation, was quoted as saying on October 31 by the official ISNA news agency.

Prior to the sale, the Iranian state had held 18% of the company. According to local media reports, though, the state has divested 587.4mn shares, bringing its stake down to 6%.

PGPIC listed the shares for an initial price of IRR820 trillion in October 29. Ahdaf Investment Co., a subsidiary of Iran’s oil pension fund, was said to have acquired the entire block after a tight race with Tehran Oil Refinery, paying a final price of IRR18,510 ($0.056) per share.