Monday 19 August 2019

Turkish army pension fund in pole position for British Steel rescue deal

It is understood that the Official Receiver will make an announcement soon following a lengthy bidding process.

A Turkish army pension fund is the front runner to secure a rescue deal for British Steel (PA)
A Turkish army pension fund is the front runner to secure a rescue deal for British Steel (PA)

By Henry Saker-Clark, PA City Reporter

A Turkish army pension fund is expected to be announced as the preferred bidder for British Steel by the Government within the next week.

It is understood that the Official Receiver, which was appointed after the steel producer entered liquidation in May, will make an announcement soon following a lengthy bidding process.

Ataer Holding would then be given several weeks to attempt to close a deal for the Scunthorpe steel works owner to take it out of insolvency.

The firm is the investment vehicle of the Turkish Armed Forces Assistance Fund and already holds a major stake in Turkish steel producer Erdemir.

The collapse of British Steel put more than 4,000 jobs at risk, after talks broke down between the Government and the steel works’ former private equity owner Greybull.

The company was transferred to the Official Receiver because British Steel, its shareholders and the Government were not able to support the business.

A spokesman for the Official Receiver said: “The sales process is ongoing and the Official Receiver continues to assess the most viable offers received.”

Liberty House, a UK industrial conglomerate led by metals magnate Sanjeev Gupta, and an unnamed British-West African industrial consortium both reportedly also tabled bids for British Steel.

PA Media

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