Turkish state fund puts 94.44 pct of local lender Adabank up for sale again
ANKARATurkey’s Savings Deposit Insurance Fund (TMSF) will again put local lender Adabank up for auction on Feb. 23, 2016, after previous auctions did not yield results, as was announced in the Official Gazette on Nov. 21.
The insurance fund has put an appraisal price of $60 million on some 94.4 percent of Adabank, $17.5 million less than the previous 2014 appraisal price.
Bidders must submit proposals by Feb. 17, 2016, to pass preliminary qualification requirements. The last day to submit final bids is Feb. 22, 2016.
The tender will be held at the TMSF’s Istanbul office on Feb. 23, 2016.
The bidders must also pay a total of $6 million as warrant in cash to be able to participate in the tender, according to the official statement.
Adabank was seized by the regulator from Uzan Group in 2003. The fund also took control of İmar Bank and some 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 to a local group in 2009.
The watchdog had turned down another offer at an auction in 2010 because the $42-million offer was almost half the then appraisal price. It said “no” to the sale to another local group in 2012.