Turkish bill to make delisting easier

16 Jun, 2008

A planned Turkish capital markets bill will make it easier for buyers to take a company private by squeezing out minority shareholders, the head of the Capital Markets Board Turan Erol told Reuters on June 12.
The bill, which is yet to be sent to the prime minister's office or parliament, will make it easier for the buyer of a listed company to delist it once its freefloat falls below 5 percent.
Currently analysts and bankers say it is almost impossible to delist a company in Istanbul, as private equity companies usually want to do, and small stakes in Denizbank and Finansbank - both acquired by foreign lenders - continue to trade on the Istanbul market.
"With us, for example, after the freefloat falls below a certain percent, below 5 percent, there is no right to buy up the shares. Now we are going to give the owners of a company to right to buy up the remaining shares," he said on the sidelines of a conference.

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