Aabar buying stake in Turkish Banvit
Aabar Investments of Abu Dhabi is not just interested in glamorous companies such as Glencore, Virgin Galactic and Daimler. It also signed a preliminary agreement to buy 16.3 million shares in the Turkish poultry producer Banvit Bandirma Vitaminli Yem Sanayii.
The Istanbul-listed company said its shareholder Valid Faruk Ebubekir was selling the shares to Aabar. The shares are to be sold at 4.8 Turkish lira (2.9 USD) each after certain conditions in the agreement are met, Banvit said in a statement to the Istanbul Stock Exchange.
For Banvit, Turkey’s largest poultry producer, Aabar is an important investor. Last May, Aabar, which is owned by the International Petroleum Investment Company, became the largest “cornerstone investor” in the commodity trading giant Glencore. Large investors such as Aabar are given priority over small investors in initial public offerings but usually have to agree to buy shares at the top of the price range.
Turkey’s economic and political environment is encouraging Banvit’s success. The government has increased the tax for companies importing meat, from 60 per cent to 75 per cent, curbing demand for meat imports but focusing attention on local producers, notably Banvit.
Source: The National
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