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  
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