Further to our announcement on February 6, 2020 regarding the signing of an SPA to purchase 100% of SOCAR Turkey LNG; the acquisition has been successfully concluded at a total consideration of 32.4mn TL, upon obtaining all regulatory approvals and completion of the pre-conditions. The purchase price has been fully paid, in cash. As of October 30, 2020, Socar LNG Turkey shares have been transferred to Naturel Doğal Gaz Yatırımları A.Ş. (“Naturel Doğal Gaz”), a 100% subsidiary of Global Investment Holdings; while Naturel Doğalgaz, together with Socar Turkey LNG are planned to merge under Naturelgaz, a 95.5% subsidiary of Global Investment Holdings and Turkey’s & Europe’s leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume, until the end of 2020.

Such acquisition will further strengthen the position of Naturelgaz in LNG, bulk CNG, and auto-CNG businesses; increasing volume and geographical coverage while diversifying the product portfolio. This acquisition is a perfect fit to Naturelgaz’ strategies to enter into the LNG business, grow in bulk CNG, and establish an auto-CNG station network on critical routes of heavy duty vehicle transportation in Turkey. Currently, the infrastructure of Naturelgaz roughly consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors; while post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, expansion coming from new regions. In addition to CNG infrastructure, the acquisition will also bring 44 LNG tanks and equipment along with 6 LNG road tankers. In 2019, Naturelgaz distributed overall 167.0 mn Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4 mn Sm3 of CNG & LNG.

Considering the synergies and all the positive impact through such merger under Naturelgaz, the Board of Directors of Naturelgaz resolved to withdraw the IPO application to CMB, which had been submitted with pre-merger 1H 2020 financials.

In this context, all possible strategic options will be evaluated to reach a final decision regarding Naturelgaz. Such review embraces the renewal of Naturelgaz’ IPO application to CMB with 2020 year-end financials to reflect the company’s expected net income for 2020 and the acquisition effect; as well as reconsideration of the strategic options including strategic partnership proposals received during the IPO process.

A further announcement will be made when it is appropriate to do so.

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