Turkey approves the sale of army vehicle maker BMC
Thursday, May 08, 2014
ANKARA - Turkey´s Savings Deposit Insurance Fund has approved the sale of BMC to Turkish businessman Ethem Sancak´s company Es Mali Yatirim, on Thursday.
BMC was seized by the fund along with several other companies in 2013 to collect US$455.3 million worth of debt owed by its previous parent company Cukurova Holding.
The Turkish businessman offered 751 million Turkish lira (US$360 million) last Friday to buy the Turkish vehicle manufacturer known for producing military vehicles. The fund initially estimated BMC's value at 958 million lira ($462 million).
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 and then the decision as to whether to sell the company for 751 million lira will be made."
"The fund board has applied to Turkey´s Competition Authority in order to give a final decision on the deal," a statement by the Fund said.
Ethem Sancak said last Wednesday that the company will cost him around 2 billion Turkish lira (US$948 million) because of the investment he claims will be needed to continue production.
He also said that if he buys the company, he will make a strong strategic partnership with a country from the Gulf – some Qatari businessman were present at Wednesday's auction.
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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