Turkish company places final offer for vehicle-maker BMC

ANKARA

Ethem Sancak’s company ES Mali Yatırım ve Danışmanlık, which had offered 725 million liras in the first stage of negotiations on April 30, has raised its bid to 751 million. DHA Photo

Businessman Ethem Sancak’s final offer for the Turkish motor company BMC has risen to 751 million Turkish Liras, after a second round of talks in the tender for the long-awaited sale.

Sancak’s company ES Mali Yatırım ve Danışmanlık, which had offered 725 million liras in the first stage of negotiations on April 30, has raised its bid to 751 million, though this remains far below the estimated price of 985 million liras set by the Turkish state-fund, which has controlled the vehicle maker since seizing the firm from Çukurova Holding last year.

The company’s offer will be conveyed to the Savings Deposit Insurance Fund (TMSF) board for review and will be sent to the Competition Board if it is approved.

Speaking to reporters after the meeting, the businessman, who is known to have close ties with the government, said the firm was having talks with the Qatari government over a potential partnership model to fund the acquisition.

He said they would make the announcement after fixing the terms of the deal.

BMC, a manufacturer of armored vehicle Kirpis, has been in a tight squeeze since May 2012, when the company first failed to pay salaries on time. Production at BMC factories has been halted several times in the intervening period.

Sancak said they hoped to employ 3,600 people as a first step if they can seal the deal, adding that the investment required at the initial stage was estimated to be around 1 billion liras.

The İzmir-based vehicle manufacturer was supposed to deliver 468 armored vehicles (Kirpis) and trucks in a range of sizes to the Turkish Defense Ministry by the end of 2012. However, the company succeeded in only delivering 295 of the order, until 25 more Kirpis and trucks were delivered at the end of March.

Sancak, who used to mostly operate the in pharmaceutical and health sectors, has recently switched the focus of his business.

The businessman, who acquired Çukurova’s former media assets including broadcaster Skyturk 360 and daily Akşam in November 2013, announced his ambition of “building up a strong presence in the media and defense sectors” during BMC negotiations on April 30.