TURKEY: More privatisation bids submitted

24 January 1997

The government's Privatisation Administration (OIB) has received bids for the privatisation of state enterprises, including a shipping company and a tyre manufacturer. Prime Minister Necmettin Erbakan says the government plans to raise about $500 million in January from his six-month coalition's privatisation programme.

The results of the recent tender competitions have yet to be approved by the Higher Privatisation Board, which Erbakan himself chairs.

The highest bid, including interest of $141.2 million for the purchase of state shipping company Deniz Nakliyat, has been submitted by Tum Calisanlar Ortak Girisim Grubu, formed by the enterprise's employees. A first instalment of 35 per cent of the price will be paid within one year, and the remainder the following year. The instalments carry interest of 10 per cent.

Deniz Nakliyat at present operates 29 ships with a total of 537,173 dwt, and ranging in age from three-26 years. By type, four of the vessels are roll-on, roll-off (ro-ro), nine are bulk cargo, and 16 are dry cargo.

The local Kombassan Holding has submitted the highest bid of $35.75 million for tyre maker Petlas, in the fifth attempt to sell the company since 1990. The offer includes an undertaking to make $30 million worth of investments in the ailing tyre producer, in addition to the submission of a $2 million letter of guarantee.

Petlas has a design capacity of 4,000 units a day, but its output at present is about 1,000 units. Debts owed by the company as of end-1996 totalled TL 870,000 million ($8 million), while its losses for the year are expected to amount to around TL 700 million ($6,300 million).

The local Okaymak Otelcilik has also submitted the sole bid of $3.5 million for the Urgup Hotel in Cappadocia operated by state tourism chain Turban. The hotel has 243 rooms with a 480-bed capacity.

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