PRIVATISATION IN TURKEY

PRIVATISATION METHODS

PHC can select one or more of the following privatisation methods: 1) Sales, 2) Lease, 2) Grant of Operational Rights, 4) Establishment of Property Rights Other Than Ownership, 5) Profit Sharing Model and other Legal Dispositions.

1. Sales

Sales consist of

• full or partial transfer of the ownership of goods and service production units in the assets of organizations,
• full or partial transfer of the shares of the organizations in question through domestic or international public offerings,
• block sales to actual persons or legal entities,
• block sales including deferred public offerings,
• sales to employees,
• sales on the stock exchange by standard or special orders,
• sales to securities investment funds,
• securities investment partnerships or
• any combination thereof.

2. Lease

Lease means grant of the right of partial or full use of the assets of organizations for a designated period of time.

3. Grant of Operational Rights

Operation rights of organizations, with retention of ownership rights, can be granted to the private sector for a designated period of time.

4. Establishment of Property Rights Other Than Ownership

Property rights other than ownership can be established, whereas the owner consents to dispositions of the assignee on the rights of facility thereon or the owner renounces from the use of these ownership rights, in the format and under the conditions specified in the Turkish Civil Code, with retention of ownership by the owner institution.

5. Profit Sharing Model and other legal dispositions

Other methods defined in general legislative provisions and special laws which are not included in the aforementioned privatisation methods can be applied taking into account the features of the relevant organizations and markets.

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