A Turkish Private Equity Web Log

In an effort to cover the Turkish Private Equity Industry - for the promotion of Entrepreneurship, the private equity asset-investment model, and the communication thereof.

CFK Partners Joint Venture With Multinet Buys Stake in Vakif Girişim
Beating out heavy contenders like Global Yatırım Holding to buy a stake in VakifBank's Venture Capital Unit, Vakıf Girişim Sermayesi Yatırım Ortaklığı A.Ş., CFK & Partners in a joint venture with Multinet Kurumsal Hizmetler A.Ş, has bid to pay 3.13 milyon YTL for 31.15 percent.

According to the report by the TDN, Global made an offer to buy 31 percent of Vakıf Girişim. Although the details are few, shares jumped for Vakıf Girişim on the Istanbul Stock Exchange following the announcement, valuing the trust at YTL 7.9 million ($6.6 million).

This block sale of Vakıf Girişim had been announced previously. VakıfBank decided to sell its stake in Vakıf Venture Capital Investment Trust via block sale to domestic or foreign-based investors. Vakif Girişim's deals have been fairly unpublicized, and as of late, it was thought that they were no longer pursuing deals. But as it turns out, the controlling shareholders of Vakıf Girişim did not want to conduct venture activities and considered a sell-out, merger with another company or conversion into a real estate investment trust. However, it is interesting to note Global's interest for "skin in the game".

Amazingly, CFK & Partners announced (in Turkish) that they will be taking a 31.15 percent stake for YTL 3.13M ($2.6 million). This should value the trust at around YTL 10 million ($8.4 million).

I managed to speak with someone at CFK privy to the deal.
The results of the deal are as follows:

CFK Corporate Finance Consultancy Joint Venture Group (Multinet Kurumsal Hizmetler A.Ş.(Multinet) & CFK Kurumsal Finansman Danışmanlık A.Ş. (CFK & Partners)) placed the best bid with bid with TRY 3.1mn (EUR 1.7mn), for the sale of Vakifbank’s 31.5% stake in Vakif Venture Capital :

  • Total 31.00 % stake for Multinet
    • %25 Group A
    • %6.00 Group B
  • Total 0.15 % Stake for CFK Corporate Finance Consultancy Inc.
    • % 0.05 Group B Stakes of “Vakıf Finansal Kiralama A.S.”
    • % 0.05 Group B Stakes of “Vakif Deniz Finansal Kiralama A.S.”
    • % 0.05 Group B Stakes of “Gunes Sigorta A.S.”

CFK Corporate Finance Consultancy Joint Venture Group applied to the Capital Markets Board of Turkey (CMB) for the share transfer approval on March 7, 2008. The sale will be valid following the approval. The Company will also make a tender offer for minority shares.

Although some may consider this "small potatoes", they are very interesting developments, indeed. Could this even set a precedent for successful Turkish secondaries? CFK Halka Arz is a relatively new player in the Turkish Venture space, and up until now, they seemed still in the early stages of development (including their website). It should be interesting to see where this takes them.

UPDATE: I have just received prudent information regarding CFK itself, and I will include it in the next post. Please subscribe if you would like to receive it.

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Posted @ 23:00   0 Comments
Fideltus Capital Signs Agreement with German-based IEG
Fideltus Capital, a leading independent corporate finance advisory company in Turkey, and Berlin-based IEG Investment Banking have signed an agreement between the two companies to focus on Corporate Finance Advisory, Institutional Placements and Principal Investments.

IEG is one of Europe's leading independent investment banking houses for mid-cap companies, entrepreneurs and institutional investors.

It looks as if the deal is of significant strategic importance for both companies, aiding Fideltus to better brand recognition, funding relations, and investments abroad, while IEG will "centralize" in Turkey, making investments and using it as a springboard for further investments in the Middle East and North Africa.

"We will target the mid-cap client group, which has a business potential of between $5 and $250 million in corporate finance advisory," said Stefan C. Heilmann, IEG managing director. "Turkey has strong economic fundamentals, which is a key point for our clients."

The deal is also very interesting because again it points out not only the gap of private equity players in the Turkish market, but also it may prove that other Turkish financial advisories in Turkey may be up for grabs for further partnerships. The amount and type of investment deals that have been done in the last year alone have peaked quite an interest in Turkey, and the investment range signaled by this agreement has great potential, given the number of Turkish SMEs.

More details regarding the deal (in Turkish) from Referans Gazetesi: "Fideltus ile IEG güç birleştirdi, hedef küçük Goldman olmak"

In English from the TDN: "External causes behind recent turmoil"

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Posted @ 11:19   0 Comments
AIG Capital Partners Closes Deal on Sale of AFM Cinemas
AIG Capital Partners Exits AFM Cinemas - Sells to A1 Group

This should be old news at this point, but having reported on this back in November 2007 (Blue Voyage Partners Exit AFM Cinemas), it seems the deal has finally closed. According to AltAssets, "AIG Capital Partners and other shareholders have completed the sale of 51.91 per cent of Istanbul, Turkey-headquartered cinema and entertainment company AFM Uluslararasi Film Produksiyon Tic. ve San. to A1 Group, the investment group of the Alfa-Group Consortium. The transaction values the company at $75m."

It seems the value of the deal increased considerably since the original announcement to the Istanbul Stock Exchange. Previously, the deal valued the company at around $55M.

Here are the quotes:
Serkan Elden, a managing director of AIG Capital Partners, said, 'The sale of our shares in AFM Cinemas represents the conclusion of a long-term and successful partnership with AFM's shareholders and management team, led by A Adnan Akdemir. As one of the first private equity investments in Turkey, we are pleased to see that the company prospered from our investment and benefited from the growing Turkish business environment.'

A. Adnan Akdemir, the Chairman of the Board of AFM Cinemas, noted, "Since the time of AIG Capital Partners' investment, we have worked closely together to execute on our expansion strategy, take the company public on the Istanbul Stock Exchange, and sell a majority interest to A1. We believe that this partnership was fundamental to the value created at AFM."

Another case in point for the validity of the Turkish investment environment and the feasability of deal exits. This can only mean good things for Turkey as more and more private equity firms will line up to look at the Turkish market.

For more background on AIG in Turkey, and its Blue Voyage Fund, you can also view a previous post:
AIG Rehires and Re-Enters Turkish Buyout Market with Blue Voyage Advisors

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Posted @ 10:57   0 Comments

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