Istanbul, Turkey, 6 November 2015 – In one of Turkey's first squeeze-outs following the Turkish Capital Market Board's new regulations, Vaillant Saunier Duval Iberica squeezed-out the remaining shareholders of Turk Demir Dokum Fabrikalari A.S.
The Turkish Capital Markets Boards' (CMB) comprehensive set of rules on squeeze-out of minority shareholders entered into force on July 1, 2014. The regulations changed, however, when the CMB revised the squeeze-out and sell-procedures only four months later in November 2014. The Vaillant deal was ongoing throughout this process.
"We have been in touch with the CMB since the beginning of this initiative which dates back to 2012 and had opined on the CMB's draft squeeze-out regulation several times to make it a fair arrangement from the perspective of both the majority shareholder and the minorities. This has been a particularly challenging process. Our client was the first to officially launch its squeeze-out process. After the changes by the CMB only four months after the application, we had to start from scratch. We predict that squeeze out will soon become an ordinary part of M&A transactions concerning public companies in Turkey, just as mandatory tender offers have," commented partner Muhsin Keskin.
The Firm advised Vaillant in relation to the sell-out process of the minority shareholders in Turk Demir Dokum Fabrikalari A.S., and subsequently, the squeeze-out of the remaining shareholders. The deal was launched on July 2, 2014, one day after the new rules entered into force and restarted in November 2014 after the regulatory changes. The deal was completed in September 2015.
A team of lawyers from Esin Attorney Partnership, a member firm Baker & McKenzie International, advised Vaillant. Capital Markets partner Muhsin Keskin led the team with support from associates Caner Elmas, Berk Cin and Deniz Erden.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.