Announcement from the Secretariat of the Economic Coordination Council of the Heads of the Branches regarding the transfer of 2 automotive companies

The Public Relations of the Secretariat of the Supreme Council for Economic Coordination of the Heads of Branches issued a statement regarding the transfer of shares of the automobile companies Iran Khodro and Saipa.

This announcement states: It is informed to the public that, following the news published regarding the halt of transferring shares of automotive companies, today’s statement (Saturday, June 4, 2024) from the Privatization Organization in this regard is confirmed by the secretariat of the Supreme Council for Economic Coordination of the Heads of the Branches.

The statement mentions: Recently, ambiguities regarding the implementation of the Seventh Development Plan and the transfer of shares have been resolved in joint meetings. The High Council for Economic Coordination of the Heads of the Branches supports the government's decisions and the Privatization Organization to strengthen contracts and enhance the economic security of shareholders.

Today, the Privatization Organization announced in a statement: In response to the ambiguities raised today regarding the divestment of shares of two companies, Iran Khodro and Saipa, it informs all market participants that the Privatization Organization, in carrying out its legal duties and missions, remains committed to the divestment of government shares in the two companies, Iran Khodro and Saipa, with the support of the Secretariat of the Supreme Council for Economic Coordination of the Heads of Powers.

The announcement states: Accordingly, based on the duties set forth in the law for the implementation of the general policies of Article 44 of the Constitution, decisions of the privatization board, and also the Seventh Development Plan, the program for the privatization and complete exit of the government from the two mentioned companies will soon be announced after coordination with the relevant legal authorities, especially the Supreme Council for Economic Coordination of the Heads of the Branches. It is clear that the implementation of paragraph (b) of Article (5) of the Seventh Development Plan will also take place within the specified timeframe and by the relevant authorities.

Previously, the companies Iran Khodro and Saipa had announced the suspension of the transfer and change of shares in separate letters published on the Codal system.

In the letters of the CEOs of the automotive companies Iran Khodro and Saipa, published in the Codal system, it has been emphasized: Following the letter sent by the Secretary of the Supreme Council for Economic Coordination of the three branches of government regarding the preparation of the final report on the organization of the automotive industry, it has been decided to prevent any transfer and changes in the shares of these companies until the resolution of this plan.