Government of Turkey Announces Privatization of Erdemir Steel Company
The Government of Turkey has formally announced the privatization of Eregli Demir Celik (Erdemir), Turkey's only integrated steelmaker. Erdemir has a production capacity of 3.0 million tons per year and produces steel plates, hot and cold rolled sheet and tinplate.
The Turkish Government intends to sell the 46.12% stake in Erdemir held by Turkey's Privatization Administration, the governmental body responsible for the privatization process of state-owned asset, and the 3.17% of Erdemir's shares held by the Turkish Development Bank. The remainder of Erdemir's shares are currently held by the public (and traded on the Istanbul Stock Exchange) and by Turkish Halk Bank.
Companies that are interested in submitting a bid, must file pre-qualification applications by July 8, 2005 and the deadline for submitting bids is September 26, 2005. Due diligence for short-listed firms is to take place between July 25, 2005 and September 9, 2005. A bid bond of $40 million will be required from the firms that will submit bids.
Several Turkish and foreign steel companies have expressed interest in purchasing Erdemir, including Corus, Arcelor, Mittal Steel, U.S. Steel Corp.,
More information on Erdemir and the privatization process can be found on the Privatization Administration's website at: www.oib.gov.tr/portfoy/eregli_dc_eng.htm.
|posted by Douglas N. Jacobson| Permalink 
