TURKEY: Accelerated privatisation starts

29 April 1994

The Public Participation Administration (KOI) has started accelerated privatisation in line with the 5 April austerity package.

The government's privatisation agency has invited tenders for the sale of its 100 per cent stake in the Petlas tyre factory in Kirsehir. Offers were also invited on 15 April by the KOI for 12 establishments owned by textiles producer Sumer Holding. Before end-April, 32 milk and dairy producers belonging to SEK and two hotels of the resort and marina chain Turban were scheduled to go on sale.

The government aims to raise a total of $3,500 million from privatisation in 1994, and $18,000 million next year. It is the central plank of the austerity package (see Cover Story). Much of this will be raised from the denationalisation of large SEEs such as state petrochemicals giant Petkim and Turk Hava Yollari (THY - Turkish Airlines).

The first of these big SEE sales could be part or all of the Turkish Petroleum Refineries Corporation (Tupras) and refined products distributor Petrol Ofisi (POAS). The consultant to the government for the sale is a consortium led by Chase Manhattan Bank. It also includes Salomon Brothers, Kleinwort Benson, and the local Global Menkul Degerler (Global Securities - MEED 14:4:94).

The arrangers are confident of both national and international demand. Documentation will probably be ready at the end of July. At present, the envisaged deal is a three-way split between a domestic and international initial public offering (IPO) and a trade sale for each enterprise.

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