Turkey Weighs Buying EBRD’s Bourse Stake Amid Furor Over CEO
(Bloomberg) -- Turkey offered to buy shares in Borsa Istanbul possibly being lined up for sale by the European Bank of Reconstruction and Development following concerns over a convicted banker's appointment to lead the benchmark stock exchange.
TWF, the nation's sovereign wealth fund, will raise its holding in the exchange to more than 90%, Chief Executive Officer Zafer Sonmez said in a written statement to Bloomberg. It also plans to take the company public, he said, following several attempts in the past four years that were postponed as the stock exchange waited for a favorable time that could maximize its value.
“We plan to successfully manage the initial public offering of Borsa Istanbul” in the next two years, Sonmez said.
Convicted Banker's Appointment at Turkey Bourse Opposed by EBRD
The fund, which controls assets worth tens of billions of dollars, showed interest after the EBRD said it could sell its 10% stake in Borsa Istanbul. It cited concerns over the appointment of Mehmet Hakan Atilla, who was convicted in the U.S. for busting Iran sanctions, to lead the bourse.
EBRD bought its stake in Borsa Istanbul in 2015 with a view to exiting through an IPO. Back then, Turkey's stock exchange was looking for investors that could provide technology and expertise to help it sell shares to the public. Nasdaq OMX Group, which in 2013 was also an investor in Turkey's stock exchange, sold its 7% holding in 2018.
TWF, which took over the Treasury's 73.6% stake in the Turkish bourse in 2017, said EBRD first made known its intention to exit its investment in March 2018. EBRD declined to comment.
TWF's Sonmez said increased ownership in Borsa Istanbul complements the sovereign fund's strategy to turn Istanbul into a regional finance center.
--With assistance from Tugce Ozsoy.
To contact the reporter on this story: Firat Kozok in Ankara at fkozok@bloomberg.net
To contact the editors responsible for this story: Paul Abelsky at pabelsky@bloomberg.net, ;Alaa Shahine at asalha@bloomberg.net, Onur Ant, Amy Teibel
©2019 Bloomberg L.P.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
