Turkey’s Banking Regulatory and Supervision Agency (BRSA) signed an agreement with the Cukurova Group, a principle shareholder of Turkcell, regarding the Pamukbank takeover. According to the agreement, the Savings Depository Insurance Fund (SDIF) will retain the shares of Pamukbank previously owned by the Cukurova Group.
The Turkcell shares owned by Pamukbank will be transferred to the SDIF and Cukurova Group will purchase those shares in a month's time after the agreement becomes effective. In addition, within two years the Cukurova Group must sell its shares in Yapi ve Kredi Bankasi, another bank controlled by the Cukurova Group which will retain its ownership in Turkcell.
However, the Cukurova Group has the option to buy the Turkcell shares owned by Yapi ve Kredi Bankasi when the Cukurova Group sells its shares in Yapi ve Kredi Bankasi within the time period specified by the agreement.
There is currently no pledge on Turkcell shares or assets established by the agreement between the Cukurova Group and the BRSA. However, when the Turkcell shares currently owned by Pamukbank are sold to the Cukurova Group, such shares will be pledged to the SDIF until such time as the Cukurova Group has satisfied all of its obligations under the agreement between itself and the BRSA.
This past June, the BRSA announced its take over of Pamukbank’s operations. The agency assured that the bank will continue doing business and that there was no intention to either close any of Pamukbank’s branches or dismiss any of its personnel. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
