PRIVATIZATION
This section is based on Privatization Administration publications
Privatization has been on Turkey's agenda since 1985. In addition to reducing the state's involvement in economic activities, privatization aims to relieve the financial burden of loss-making State Enterprises on the national budget. It also helps develop capital markets. Since 1985, state shares in 209 companies, 4 power generations, 21 incomplete plants and 5 real estates have been taken into the scope of privatization portfolio.
Since 1985, total sale value of privatization implementations has been about USD 7.3 billion. Some of these asset and share sales were made on installment payment and foreign exchange basis and as of July 31, 2000, USD 6.8 billion privatization revenue has been realised. The discrepancy between the sales value and net revenues stems from interest on payment by installments and exchange rate variations in the case of foreign exchange payments.
Total income from organisations on the privatization program during the 1985-July 2000 period, together with the USD 1.9 billion dividend income and USD 0.8 billion other income, reached to USD 9.5 billion. In the same period, total privatization expenses were USD 8.8 billion. The largest item in privatization expenditures (about 90%) is the finance of the companies in the privatization portfolio in the form of capital increase and loans.
- The block sale of 51% shares of POAS, which is the leading petroleum and gas products distribution and sale company in Turkey, have successfully completed with a sale value of 1,3 billion US Dollars.
- The shares of the biggest Turkish Petroleum Refining Company, Tüpras were first introduced in USA, and as a result of that "Green Shoes" method, the demand for Tüpras shares had reached 1,660 million USD; 1,300 million USD from local and 360 million from international investors.
| 1986-1998 ($) |
1999 ($) |
2000 ($) |
TOTAL ($) |
|
| Block Sale | 2,031,702,613 | 0 | 1,469,015,865 | 3,500,718,478 |
| Asset Sale | 622,312,085 | 37,807,103 | 81,221,138 | 741,340,573 |
| Public Offering | 673,899,791 | 0 | 876,985,752 | 1,550,885,543 |
| International offering | 721,949,083 | 0 | 266,456,935 | 988,406,018 |
| I.S.E. Sale | 526,587,764 | 0 | 0 | 526,587,764 |
| Incompleted Asset Sale | 3,847,242 | 521,550 | 0 | 4,368,792 |
| TOTAL | 4,580,298,578 | 38,328,653 | 2,693,679,690 | 7,312,307,168 |
PRIVATIZATION
IMPLEMENTATIONS BY YEARS
(Million $)
PRIVATIZATION ADMINISTRATION PROGRAMME FOR
2000
(Termination Time Table)
| 1. QUARTER | 2. QUARTER | 3. QUARTER | 4. QUARTER |
| DENIZ
NAKLIYAT (Sea Freight) ORUS (Asset) (Forestry) |
PETROL OFISI (Petroleum Dist.) TÜPRAS (IPO) (Petroleum Refining) |
ATAKÖY
MARINA-HOTEL QUOTED SHARES PARTICIPATIONS THY (Block) |
ERDEMIR
(IPO) PARTICIPATIONS TÜPRAS (Block/IPO) (Petroleum Refining) |
| ANKARA
INSURANCE GÜVEN INSURANCE |
PETKIM
YARIMCA (Petrochemicals) |
(Airlines) TÜGSAS |
PETKIM
(Block/IPO) (Petrochemicals) |
| ASIL ÇELIK (Iron and Steel) EBAS (Asset) |
ISDEMIR (Iron and Steel) PARTICIPATIONS |
(Fertilizer) IGSAS (Fertilizer) |
ATAKÖY TOURISM |
| (Meat
Processing) KBI (Asset) |
KBI (Block) (Copper) |
||
| (Copper) TAKSAN (Machine Industry) |
SEKA (Asset) (Pulp and Paper) SUMER HOLDING |
||
| TURBAN
(Asset) (Tourism) |
(Textile) TRABZON PORT |
||
| TZDK (Asset) | (Maritime) | ||
| (Agriculture) ETAG (Wood Products) |
TUMOSAN (Machinery) |
| 2000 Sub total of Privatization implementations (Million $) | 5.200 |
| 2000 Sub total of cash to be received (Million $) | 3.100 |
Source: Privatization Administration