Turkish state fund puts Adabank up for sale once again

Turkey's Savings Deposit Insurance Fund, or TMSF, will once again put local lender Adabank up for auction on Nov. 29 after previous auctions did not yield results, as was announced in the Official Gazette Friday.

Determining the appraisal price of $60 million, the TMSF will put up for sale its 94.44 percent of shares in Adabank at an auction that will take place on Nov. 29 at 11.00 a.m. This will be the ninth time that Adabank is being put up for auction after previous auctions did not yield results.

The Uzan Group's regulator seized Adabank in 2003 and the fund also took control of İmar Bankası and 200 companies owned by the Uzan family group. The fund accused the Uzan Group of taking part in a scheme to siphon off millions of dollars from the two financial institutions.

In 2007, the Banking Regulator of Turkey rejected the sale of 99.99 percent of Adabank to the Kuwait-based International Investor Company because of its inadequate financial strength. The banking regulator also rejected the sale of Adabank in 2009 to the Kok Group.

The insurance fund had turned down BankPozitif's offer, owned by Israeli-lender Hapoalim, to buy Adabank at an auction on Nov. 26, 2010, because its $42 million offer was only half the appraisal price of $90 million.