Highest for Turkish army vehicle maker $356 million
Friday, May 02, 2014
ANKARA - A Turkish businessman has offered 751 million Turkish lira (US$356 million) on Friday to buy a Turkish vehicle manufacturer known for producing military vehicles.
BMC, who make land-mine resistant vehicles as well as trucks and buses, were auctioned by Turkey's Savings Deposit Insurance Fund on April 30 for 985 million Turkish lira. Ethem Sancak initially offered 540 million Turkish lira but his company ES Mali Yatirim increased the offer after negotiating with the auction commission.
The auction commission said: “The offer will be presented to the fund board then the decision will be made whether to sell the company for 751 million lira."
Ethem Sancak said Wednesday the company would cost him around US$2 billion Turkish lira ($948 million) because of the investment he claims would be needed to continue production.
He also said that if he buys the company, he would make a strong strategic partnership with a country from Gulf – some Qatari businessman were present at Wednesday's auction.
BMC was seized by the fund along with several other companies in 2013 to collect US$455.3 million debt owed by its previous parent company Cukurova Holding.
The Turkish Armed Forces and BMC previously agreed on a deal to produce 468 Kirpi vehicles, Turkey's first mine-resistant vehicle, but the company only met its commitment on 278 vehicles - which led to the company being fined.
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