Turkey suspends plan to sell seized firms worth $10b

Companies part of the more than 850 firms confiscated by the government last year

Turkey put on hold a plan to sell almost 600 companies worth about $10 billion (Dh36.7 billion) that were seized in the aftermath of a failed military coup, according to two people with knowledge of the matter.

It’s not clear whether the Istanbul-based Savings Deposit Insurance Fund, known as the TMSF, will ever go ahead with the sales because of concern over legal battles regarding their ownership, the people said, asking not to be identified because the plans are private.

The companies form part of the more than 850 firms confiscated by the government last year and which have assets that are estimated to be worth a combined 48 billion liras ($13.2 billion). All of the companies were taken over for their alleged support of self-exiled Pennsylvaniabased cleric Fethullah Gulen, who President Recep Tayyip Erdogan accused of plotting the failed coup last July.

Gulen has denied any involvement in the botched takeover.

Turkiye Sinai Kalkinma Bankasi AS, or TSKB, Vera Varlik Yonetim AS and Garanti Yatirim Menkul Kiymetler AS were picked to advise on the sale in December. The fund hasn’t held any meetings with the advisers on strategy since, the people said.

A Vera Varlik executive didn’t respond to request for comment, while two TMSF executives weren’t immediately available to comment on telephone. One of them didn’t reply to emailed questions from Bloomberg.