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Why are Turkey’s leading conglomerates selling their shares?

In recent days there have been various reports about the share sales of some large conglomerates in Turkey.

After the stock market started to rise, several companies came to announce the sale of shares in recent weeks. On May 17, Alkim Alkali Chemical partner Adem Haluk Kora sold 494,500 shares, which is the owner, at a price of 25.06 TL. Then Mustafa Latif Topbaş, a partner of Bim United stores, sold the entire 14.78 percent of his shares he held.

Finally, today two of Turkey’s most valuable holdings came to announce the sale of shares separately. While some sales of Koç Holding family shares were initiated, some of the Sabancı Holding family’s share was sold to 21 international investors. Koc Holding started the transaction for the sale of 107 million shares and the Sabancı family sold shares of Sabancı Holding worth about $ 100 million.

The question is why did Turkey’s biggest and well-known companies sell their shares at the same time.

Istanbul University Faculty of Economics Faculty Member Assoc. Dr. Murat Birdal explained why did these well-known companies sell their shares. In an interview with the Gazete Duvar, Birdal said: “There may be two reasons for the sale being made now” said Dr. Birdal. The first reason is the high price of the companies. For example, if the price of your company is much higher than it should be then it is economically rational for you to make sales at such a time. This could be the reason but while many small companies make such sales time to time, It has never witnessed such a sale of big companies like Sabancı and Koç before. Thus, It is perfectly normal that these sales got attention from the Turkish and international media.

“Also, we can speculate that these companies know something about the future of the Turkish economy which we don’t know. It may be the reason why they sold their shares but as I said we can only make speculation about this possibility. It is hard to tell what it is” said Dr. Birdal.

It was a matter of curiosity how President Erdogan, which constantly sends messages to the world of business on the economy, will react to these sales.

Mustafa Öz, Texas

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