Sabancı Holding sold 51 % of the shares of Sasa, the most rooted and biggest polyester manufacturer of Turkey, to Erdemoğlu Holding in return for 102 million US Dollars. In the explanation made by Sabancı Holding to the Public Disclosure Platform after the sale, the share transfer agreement concerning the sale of all of their par value stocks amounting to 110.3 million Turkish Liras, which is equal to 51 % of the shares of Sasa Polyester, to Erdemoğlu Holding came into effect on 13 January.
What happened?
The process, which has been followed by our Magazine Group which feels the pulse of the Turkish textile sector, started with Sabancı Holding’s statement that 51 % of the shares of SASA would be sold to the Indian Indorama Group in return for 62 million US Dollars in April. İsmail Gülle, Chairman of the Governing Board of Istanbul Textile and Raw Materials Association (ITHIB), made the following explanation in relation the sales of SASA, which was discarded by Sabancı Holding but has a strategical importance for textile sector: “Even a brand of meatball is sold to a higher price. Of course we are authorised to interfere in the decisions of the firms. However, we support production in Turkey. Thus, we object to this sale and will take the issue to the Competition Authority.” and applied to the Competition Authority for the suspension of the process.
10 local firms requested to buy SASA whose sale was stopped by the Competition Authority and we learned that Sabancı Holding which had sold SASA to the Indian firm in return for 62 million US Dollars demanded a higher amount from the Turkish firms by claiming that stocks of SASA in the exchange market increased in value.
Textile Sector Breathes a Sigh of Relief
Stating that the sales of SASA to Erdemoğlu Holding which incorporates such brands as Merinos Carpet and Furniture, Zeki Mensucat, Özerdem Mensucat and İlke Tekstil instead of a foreign-owned company enabled the textile sector to breathe a sigh of relief, İsmail Gülle added that: “The fact that the textile sector, which supports Turkey in terms of production, export and employment, is our national industry has been proven once again with the decision taken in relation to the sales of SASA”. Expressing that they were pleased to hold positive discussions with Sabancı Holding after the event which affected the Turkish textile sector’s motivation in a negative way, Gülle said that: “SASA which was considered as a heritage by Sakıp Sabancı has a national value. Sakıp Ağa was one of the esteemed leaders of our sector. We are highly pleased to see that SASA which was established and developed by Sakıp Sabancı with great efforts and gave life and strength to numerous firms following it was not sold to a foreign company.”
Continuing his remarks by saying: “Polyester manufactured by SASA being at the disposal of a foreign company will be good for no one in Turkey. Thus, we created a very strong opposition to draw the attention of the public. Our aim was to protect the sector and draw attention to our national savings. As one of the groups shaping the industrial history of Turkey, Sabancı Holding gave the right decision and made the best thing for everybody by selling SASA to Erdemoğlu Holding.”, Gülle said that he wishes that this sales will be beneficial for the whole country.
Sector is pleased with the sales
Zeki Kıvanç, the Chairman of Adana Chamber of Industry, said that: “The Indian Indorama is a firm trying to create an international cartel in the fibre yarn sector and their intention was to buy SASA and condemn our country to this cartel” and added that: “The fact that SASA was purchased by a local firm pleased the sector and rescued us from a cartel”.
Hikmet Tanrıverdi, Chairman of Istanbul Garment and Apparel Exporters’ Association (IHKIB), said that he, too, is pleased with the sale of SASA to local firms which will strengthen its technological infrastructure. Tanrıverdi said that: “SASA Polyester is a significant facility for us. A foreign partner and a cartel will cause problem”.
