Turkish conglomerate Sabancı Holding sells vehicle manufacturer Temsa
Sabancı Holding, one of Turkey’s largest conglomerates, has sold its vehicle manufacturing firm Temsa to Swiss firm True Value Capital Partners, Bloomberg HT reported on Thursday.
Temsa, which manufactures buses and light trucks at its plant in the southern Turkish city of Adana, was nominally valued at 825 million liras ($140 million). The sale was made based on a value of 375 million liras after adjusting for debt and cash holdings, and includes the 49 percent stake owned by Sabancı Holdings and the other 51 percent owned by shareholders including the Sabancı family, which owns the holding company.
The sale comes during a difficult period for Turkish manufacturers, who have suffered due to a rise in costs driven by the steep decline of the lira since the beginning of 2018. The lira dropped by 28 percent against the dollar that year, and it has been subject to large fluctuations this year.
Turkey’s Treasury and Finance Minister, Berat Albayrak, unveiled a $4.9 billion package in May for manufacturers who have faced a steep rise in import costs during the lira sell-off.
The sale of Temsa was decided during a technological and strategic shift by Sabancı Holding, Bloomberg HT quoted CEO Mehmet Göçmen as saying. The conglomerate’s decision to increase its focus on energy production was underlined by its acquisition of two of four regional tenders for a wind energy production programme run by the energy ministry.