Mitsui may double stake in Turkey’s Sarten by early next year

ISTANBUL: Japan’s Mitsui & Co is in talks to double its stake in Turkish integrated packaging manufacturer Sarten Ambalaj Sanayi, the Turkish company’s chief executive officer said.

The parties may reach an agreement for Mitsui to bring its stake to 30% from 15% by early next year, Zeki Saribekir said in an interview in Istanbul on Tuesday. Privately held Sarten doesn’t plan to sell more than 30% to Mitsui or to offer shares to the public, he said.

Mitsui & Co. declined to ment.

Mitsui acquired the Sarten stake in 2015, according to information on Sarten’s website. The Turkish company manufactures steel cans and plastic containers for food, household goods, motor oil and chemical products. Its revenue was about 894 million liras (RM1.06bil) in 2016, according to data published by the Istanbul Chamber of Industry.

Sales may rise to 1.1 billion liras in 2017, Saribekir said.

Sarten plans to reissue a 40 million-lira bond expiring on Oct 13, with Yapi & Kredi Bankasi AS acting as adviser, he said. The bonds will have a maturity of two years and will be the company’s fifth sale.

“We have so far financed our growth with the support of the development bank, TSKB, the IFC and EBRD,” he said. “Although we’re not on the stock market, we would like to remain in the corporate bond market.” The company plans to issue another lira-denominated bond in July 2018, he said.

Sarten, which has 14 plants in Turkey and one each in Russia and Bulgaria, will open a new factory in the Netherlands in November, Saribekir said. “We may buy a plant or company abroad in near future,” he said, as the company looks to expand its steel packaging business. “We are especially looking into Morocco,” he said. — Bloomberg com-