Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

'It's a War, Stupid!'

Read more

BUSINESS DAILY

French PM calls on ECB to go further to help economy

Read more

IN THE PAPERS

'I love the Socialists'

Read more

WEB NEWS

Ukraine: Web users call for international assistance

Read more

WEB NEWS

France: Fighting political corruption with transparency

Read more

MEDIAWATCH

No strategy and a beige suit

Read more

AFRICA NEWS

South Africa: Four men found guilty of shooting Rwandan exile

Read more

THE WORLD THIS WEEK

The World This Week - August 29th, 2014

Read more

THE WORLD THIS WEEK

The World This Week - August 29th, 2014 (part 2)

Read more

  • Ukrainian forces retreat from Luhansk airport after clashes

    Read more

  • Iraqi forces free Armeli in biggest victory over IS militants since June

    Read more

  • Anti-government protesters storm Pakistan's state TV

    Read more

  • PSG trounce Saint-Etienne 5-0 with Ibrahimovic hat trick

    Read more

  • Putin calls for talks on 'statehood' for east Ukraine

    Read more

  • Rescue efforts under way after French apartment block blast

    Read more

  • Poland marks 75 years since German invasion of WWII

    Read more

  • Israel appropriates large tracts of West Bank land

    Read more

  • Tension rises in Hong Kong as Beijing rejects open elections

    Read more

  • French police stop 'teenage jihadist' from flying to Syria

    Read more

  • Kidnapped Yazidi women 'sold to Islamists' in Syria

    Read more

  • Confusion reigns after Lesotho 'coup'

    Read more

  • French PM vows to safeguard 35-hour work week

    Read more

  • Inside Novoazovsk – the pro-Russians' latest conquest

    Read more

  • Filipino UN troops escape Islamists in Golan Heights

    Read more

BAT bags Turkish tobacco firm

Latest update : 2008-02-22

British American Tobacco's $1.72-billion bid won the auction for Turkish state-owned cigarette company Tekel, bringing BAT's share of the Turkish market to 36%.

British American Tobacco (BAT) on Friday won an auction for Turkey's state-owned tobacco company Tekel with a bid of 1.72 billion dollars (1.16 billion euros) in Ankara's third effort to sell the company.
  
The London-based BAT beat three other bidders in the televised auction to win the asset-only sell-off which includes Tekel's six factories in Turkey.
  
One of the other bidders included a consortium between Turkish conglomerate Dogan Holding, Citi Venture Capital International (CVCI) and Turkish cigarette wholesaler TUTSAB.
  
The remaining two were a group bringing together private equity firm CINVEN and a group of Turkish businessmen, and a venture between Turkish construction company LIMAK and Morgan Stanley's Turkey investment Fund, PI Turkey.
  
Turkey's Competition Board and privatization authorities must now approve the sale for the takeover to be finalized.
  
This was Turkey's third attempt to sell TEKEL.
  
In 2003, Japan Tobacco International won the first tender with 1.15 billion dollars, but Ankara scrapped the tender on the ground that the bid failed to meet its expectations.
  
A second tender in 2004 failed to draw any offers.
  
Tekel controls about 30 percent of the tobacco market in Turkey where parliament recently passed a bill banning smoking in public places. The ban is set to come into effect in April.
  
The company employs some 15,300 people and posted a loss of 339.7 million Turkish liras (282 million dollars, 191.3 million euros) in 2006. The company has not announced financial data for 2007.
  
Privatisation is a key element in Turkey's economic programme, backed by a 10-billion-dollar loan from the International Monetray Fund, as it consolidates its recovery from two severe financial crises in 1999 and 2001.

Date created : 2008-02-22

COMMENT(S)