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Iran allows divestment of stake in third largest carmaker Pars Khodro

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
The Iranian government issues permission for divestment of stake in third largest carmaker Pars Khodro.

The Iranian government has authorized listing of its indirect stake at the country’s third largest carmaker Pars Khodro.

Head of the Iranian Privatization Organization Hossein Ghorbanzadeh said on Wednesday that the body had issued a permit for divestment of government shares in Pars Khodro, a company where the government holds a stake through Saipa, Iran’s second largest carmaker.

Ghorbanzadeh said the permit was issued at the request of Iran’s ministry if industries, adding that the managing board of Saipa will decide on the divestment mechanism for Pars Khodro.

The divestment is in line with a government privatization scheme in Iran which is aimed at increasing the participation of the public in the ownership of state corporations and creating new sources of funding for key infrastructure projects.

The government has sold some of its shares in large oil and gas companies as well as in banks. It has also plans to sell shares in Saipa and largest carmaker Iran Khodro.

Founded in 1956, Pars Khodro is the third largest automobile manufacturer in Iran in terms of output. The company has no model or platform of its own and mostly assembles foreign and domestic models.

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