Almetyevsk, Russia – Russian petrochemical giant PJSC Tatneft has agreed to sell its shareholding in the Nizhnekamskneftekhim synthetic rubber business to TAIF PSC, a capital investment company focused on developing industry in Russia's Tartarstan region.
The transaction price is $525 million (€503 million) for Tatneft's 402.8 million shares. TAIF already owned the majority share.
Nizhnekamskneftekhim is among the larger petrochemical companies in Europe, Tatneft said, with capacities for general purpose and specialty synthetic rubbers; polystyrene, polyethylene and ABS plastics; monomers used to produce SR and plastics; and other petrochemicals.
Among the company's rubber types are styrene-butadiene, butyl, halobutyl and isoprene, according to company records. The enterprise has been in operation since 1967.
Petrochemicals represented about 8% of Tatneft's 2016 revenues, the company said, or roughly $725 million. SR represented about 41% of Nizhnekamskneftekhim's business.
Tatneft said the transaction to sell the shares in Nizhnekamskneftekhim does not alter its plans to develop its petrochemical business, including by collaborating with Nizhnekamskneftekhim and other entities in Tatarstan.