Key investors to sell stake in Turkey's Akbank

Bloomberg

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The time limit for the sale of about 251 million shares, worth about $640 million at current market prices, is between 10 and 20 years, according to a filing on the exchange’s Web site. The stake represents about 23 percent of Akbank’s free float.

"This is negative for the shares at this stage, because they did not reveal to whom are they selling and at what price," said Funda Afacan, an analyst at BGC Partners in Istanbul. "In this depressed environment, with depressed valuations I am guessing a block sale must be on their agenda, probably even the buyer is ready."

The Sabancıs and other investors also registered for sale 285 million shares, or a 16 percent stake, in Sabancı Holding, according to the filing. The shares are worth about $500 million and equivalent to 61 percent of the company’s free float, according to Bloomberg data.

In a press statement, Sabancı Holding said board members who are members of the Sabancı family are committed to "creating long term value" for the company.

"Decisions to sell shares by other shareholders who are not on the board are independent decisions," the statement said. "These kinds of decisions are affecting the share price in the short term."

"We think these shares will be sold only if there’s an institutional buyer and not in the short term given current conditions," said Haydar Acun, head of Sardis Securities in Istanbul, in an e-mailed report to investors. "These shares will be floatable after registration but it doesn’t necessarily mean they will be dumped today."

Citigroup also has a 20 percent stake in Akbank. Citi considers its stake a long term investment, newspapers reported at the end of last month, citing William Mills, who runs the bank’s operations in Western Europe and the Middle East.