Turkish commercial bank put up for sale

The Savings Deposit Insurance Fund (TMSF) put up for sale 10.7 billion shares of Türk Ticaret Bankası AŞ, currently 98.4 percent owned by SDIF.

According to the announcement published in today’s edition of the Official Gazette, the tender, whose estimated value is determined at TL 380 million, will be held on March 21 using the sealed envelope method.

Consists of 10.9 BILLION SHARES

With the decision of the Agency for Banking Supervision and Regulation (BDDK) on November 4, 2021, bids can be submitted until March 20 for Türk Ticaret Bankası AŞ, consisting of a total of 10.9 billion shares.

Legal persons with the qualities sought in bank founders may participate in the tender. Participants must not be in a state of bankruptcy, bankruptcy stay, concordat or liquidation.

FOUNDED IN 1913

The bank, which was established in 1913 under the name Adapazarı İslam Ticaret Bankası and in 1937 under the title Türk Ticaret Bankası, was closed in 2002.

After the bank was seized on May 26, 1997 at a loss of $820 million and transferred to the SDIF with its 84.52 percent stake, it was sold to businessman Korkmaz Yiğit for $600 million with the bidding made in 1998.

Following the completion of the tender, it was decided to cancel the tender in light of the written request made by the police to the SDIF and the evidence presented.

Despite the transfer of approximately $1 billion of funds between 1997 and 2000, the bank was not sold and its banking and deposit collection authority was revoked by the SDIF on July 1, 2001.

After the decision, the legal battle of the Munzam Foundation began, which is made up of employees and retirees with 6 percent of the shares.

BRSA GAVE OPERATING PERMIT IN 2021

Munzam Fund objected to the Council of State’s decision, arguing that the closure was based on political, not financial, reasons. On November 8, 2001, the General Assembly of the Contentious Chambers of the Council of State revoked the decision in favor of the ballot box and approved the reactivation of the bank.

In the ongoing process, following recommendations by then-President Ahmet Necdet Sezer to the BRSA via the State Supervisory Board that the judicial phase would be extended and the liquidation process should be completed, the liquidation was decided in August 2002 and the liquidation process, which began on November 18, 2003, will take a long time due to legal issues.

In 2021, the BRSA decided to grant an operating license to Türk Ticaret Bankası AŞ.(REUTERS, SOZCU.COM.TR)