Erdemir privatization tender kicks off

Erdemir privatization tender kicks off

Notices published today in various Turkish newspapers signaled the start of the tender for a controlling interest in Turkey's largest flat steel producer, Eregli Demir Celik Fabrikalari TAS (Erdemir). Up for grabs in the tender are a 46.12% stake held by the Turkish Privatization Agency and a 3.17% stake held by the Development Bank of Turkey. After the completion of the tender, an additional 3.07% stake from Erdemir's own portfolio will be put on the market. In order to take part in the tender, bidders are being asked to pay a $40 million provisional bond. The deadline for bids is September 26, 2005. Among the foreign producers that have expressed an interest in Erdemir are Luxembourg-based Arcelor, Mittal Steel, Anglo-Dutch Corus, and three Russian steel producers – Severstal, Novolipetsk Iron & Steel (NMLK), and EvrazHolding. Moreover, Turkish producers Kibar Holding and Borusan have shown an interest in the tender.