Turkey’s military pension fund – OYAK has struck a provisional agreement to take over British Steel, it said on Friday, including it planned to close the deal by year-end.
Britain’s second-largest steelmaker employs 5,000 employees and produces high-margin metal merchandise utilized in construction and railways. It supports a further 20,000 jobs in its provide chain.
The company was put into obligatory liquidation on May 22 after Greybull Capital, which purchased the agency for one pound from Tata Steel three years ago, did not secure funding to continue its operations.
Ataer Holding, an affiliate of OYAK, can have the exclusive rights to carry out due diligence on British Steel and expects to finish this in October, OYAK said in a statement.
“We’ll proceed to make our investments for the high benefit of our members and to take domestic and worldwide steps with our growth-focused vision,” mentioned OYAK General Manager Suleyman Erdem.
“It’s expected that the due diligence process can be completed in October and if it is finalized efficiently the end of this year shall complete the transfer of the corporate,” OYAK said.
OYAK (Ordu Yardımlaşma Kurumu) is a pension fund, with around 260,000 members. Its OYAK Holding investment subsidiary is one of the largest industrial groups in Turkey. It co-owns, an automobile manufacturer, an Erdemir, a steel producer, and is the former owner of Oyak Bank (sold to ING Bank in 2007) and the Oypa supermarket chain. In 2012 it was rated BB+/stable by Standard & Poor.