OMV in cooperation talks with Turkey's Dogan Holding

Austrian oil and gas company OMV said it is in preliminary discussions with the Turkish company Dogan Sirketler Grubu Holding concerning a strategic cooperation in oil and gas products distribution and supply.
OMV said the intended cooperation includes opportunities in refining and in exploration and production of oil and natural gas products. Both companies agreed upon confidentiality of the discussions, OMV said.

Dogan Sirketler Grubu Holding, or Dogan Holding, majority owned by the founding Dogan Family, ranks among Turkey's top five conglomerates. The group now focuses primarily on media and oil and gas distribution, as well as insurance, tourism, industry and commerce.
In addition to Dogan Holding, nine other group companies are listed and traded on the Istanbul Stock Exchange, or ISE. These currently include Petrol Ofisi, Dogan Yayin Holding, Huerriyet, Milliyet, Ray Sigorta, Milpa Ticari, Celik Halat, Ditas Dogan, and Dogan Burda Rizzoli.

Total market value of listed Dogan Group companies on the ISE amounts to $ 9.6 bn. According to third quarter 2005 consolidated financial results, Dogan Holding's total sales approached $ 5.0 bn whilst the group employed a workforce of nearly 11,000. Dogan Holding's own current market cap is approximately $ 2.8 bn.
Petrol Ofisi was established in 1941 as a State Economic Enterprise by the Turkish Government and is engaged primarily in the supply and marketing of fuel and gas from domestic and foreign markets. The company was included in the privatization program in 1990 and in 2000, where 51 % of its shares held by the Privatization Administration were sold to Tuerkiye Is Bankasi and Dogan Holding in one of Turkey's largest privatization deals.

In Sep. 2005 Tuerkiye Is Bankasi total Petrol Ofisi shares were acquired by Dogan Holding. With this recent acquisition Dogan Holding gained total control of the company, whose remaining minority shares are publicly traded on the ISE.
Petrol Ofisi is the leading distributor of refined oil products in Turkey with its average 35 % market share in fuel products. With over 800,000 cm total storage capacity, the company has the largest storage capacity accounting for 29 % among the distributors, an additional 160,000 cm storage capacity investment will be completed in 2006.

The company distributes its products through dealer owned dealer operated service stations numbering over 3,500, the largest network, widely dispersed throughout the whole country.
Petrol Ofisi reached $ 6.56 bn net sales as of the third quarter 2005 and market capitalization is around $ 1.86 bn. The company employs 1,034 people.