The Türkiye Wealth Fund (TWF) is set to become the largest shareholder in Turkish electric carmaker Togg after restructuring the company's ownership, the fund announced Tuesday.
The fund said the change in the partnership structure aligns with Türkiye's objectives of high value-added production and establishing a global mobility and technology brand.
Under the restructuring, a share transfer agreement was signed regarding the transfer of shares held by AG Anadolu Group Holding and Vestel Elektronik in Togg to the Türkiye Wealth Fund and Turkcell.
Vestel and Anadolu Group Holding said on Tuesday they had signed agreements to sell their stakes in Togg to TWF and telecommunications giant Turkcell, in which TWF, through a subsidiary, holds a 26.2% stake.
According to disclosures made to the Public Disclosure Platform (KAP) by the companies, AG Anadolu Group Holding has signed an agreement to transfer its 23% stake in Togg, specifically, a portion equivalent to 11% of Togg’s total capital to Turkcell, and a portion equivalent to 12% to the TWF for 184 million euros ($206.02 million).
Meanwhile, Vestel has decided to sell its entire 23% stake in Togg to the TWF for 184 million euros. Once these transactions are completed, the ownership structure of Togg will change.
The statement indicated that, upon completion of the transaction, Turkcell's total stake in Togg will rise to 34%, while TWF's share would rise to 35%.
Thus, under the new ownership structure, the Türkiye Wealth Fund will become the shareholder with the largest stake in Togg.
Togg was founded eight years ago after President Recep Tayyip Erdoğan called for the production of a fully locally funded passenger car.
Before restructuring, Vestel Elektronik, Anadolu Group Holding, Turkcell and BMC Otomotiv each held 23% stakes in the company. The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) owns the remaining 8%.
Entering the automotive market with sales of 19,583 vehicles in 2023, Togg achieved 37,426 sales in the first nine months of this year.
Becoming the sector leader with a 31% share of the Turkish electric vehicle market during the same period, it reinforced its position in the country's electric mobility transition.
The Türkiye Wealth Fund's addition as a shareholder is considered a major step in the fund's objective of realizing domestic investments aligned with Türkiye's strategic priorities.