Banks sell $254 million of frozen Turkish blue-chip shares off-market
The off-exchange placement of shares held by funds being liquidated aims to reduce uncertainty regarding Turkey's main stock indexes.
Banks overseeing the liquidation of frozen funds in Turkey sold approximately $254 million of blue-chip shares through an off-market transaction, Mint reported.
TC Ziraat Bankasi AS and Turkiye Is Bankasi AS completed the sale on November 3 via an off-exchange placement to investment and pension funds.
The transactions, valued at 12.7 billion liras, were detailed in a notice from Turkey’s Capital Markets Association to asset managers.
The sale involves shares from companies in the benchmark BIST-30 Index, which were offered in 20 equal blocks at November 3 closing prices.
According to the notice, buyers are prohibited from reselling the shares on Borsa Istanbul for three months and cannot use alternative transactions to bypass this restriction.
The liquidation process involves 131 funds managed by seven asset managers, following a regulatory order to wind them down after a crisis affecting more than 455,000 investors.
Settlement for the transaction is scheduled to take place on Wednesday through a conditional transfer mechanism.