Turkey’s regulator puts Adabank up for auction again

Turkey’s regulator puts Adabank up for auction again

ANKARA – Anadolu Agency
Turkey’s Savings Deposit Insurance Fund will auction off Adabank on Feb. 4, 2015 after previous auctions did not yield results, as was announced in the Official Gazette Dec. 25.

The insurance fund has put an appraisal price of $77.5 million on Adabank, $12.5 million less than the previous 2010 appraisal price.

Bidders must submit proposals by Jan. 28, 2015 to pass preliminary qualification requirements. The last day to submit bids is Feb. 3, 2015.

On Feb. 4, 2015 94.44 percent of Adabank’s shares will be sold in Istanbul. 
Adabank was seized by Uzan Group’s regulator in 2003. The fund also took control of İmar Bank and 200 of the Uzan group’s companies. The fund had accused Uzan Group of taking part in a scheme to siphon millions of dollars from the two financial institutions.

In 2007, Turkey’s Banking Regulation and Supervision Agency (BDDK) rejected the sale of 99.99 percent of Adabank to the Kuwait-based International Investor Company because of its inadequate financial strength. The BDDK also rejected the sale of Adabank in 2009 to a local group.      

The insurance fund had turned down BankPozitif’s offer, owned by Israeli-lender Hapoalim, to buy Adabank at an auction on Nov. 26, 2010 because of its $42 million offer that was half the appraisal price of $90 million.