Turkey Wealth Fund (TWF) and Qatar Investment Authority (QIA) completed today the acquisition of 10% of the shares in Borsa İstanbul AŞ (Borsa Istanbul) by QIA following the signing of the Memorandum of Understanding (MoU) on 26 November 2020 between two parties. The transaction size of USD 200 million implied a total equity value of USD 2 billion.
TWF CEO Zafer Sönmez said: “The 10% share transfer in Borsa Istanbul is one of the very first steps for the long-term cooperation between the two sovereign wealth funds. This investment will support the value creation and strengthen the corporate governance of Borsa Istanbul before an IPO of the company that we plan to pursue in the medium term. The transaction is also a demonstration of foreign direct investment in Turkey during the COVID-19 pandemic and global economic challenges. Borsa Istanbul will become one of the most important actors in İstanbul Finance Center that is planned to be operational in mid-2022. With this investment, QIA demonstrates its trust and commitment to both Borsa Istanbul and Turkey’s economic vision.”
Upon the completion of the transaction, TWF remains the largest shareholder in Borsa Istanbul with an 80.6% shareholding. QIA becomes a new investor in Borsa Istanbul with a 10% shareholding while the remaining shares are held by prominent local capital markets institutions.
About Turkey Wealth Fund
TWF is the sovereign wealth fund of Turkey, established in 2016 with the main objectives of increasing the value of the state-owned assets in its portfolio and contributing to Turkey’s strategic investments. TWF’s portfolio is composed of 23 companies in 8 strategic sectors including Turkish Airlines, Turkcell, Ziraat Bankası, Borsa Istanbul, PTT, BOTAŞ, Eti Maden and Çaykur, 2 licences and real estates. Acting as the equity solutions provider of Turkey, TWF aims to create further value to its portfolio companies, invest in the strategic projects of Turkey, contribute to transforming Turkish companies into regional and global leaders and be the talent pool of Turkey going forward. Further information can be found at www.tvf.com.tr/EN.
About Qatar Investment Authority
QIA is the sovereign wealth fund of the State of Qatar. QIA was founded in 2005 to invest and manage the state reserve funds. QIA is among the largest and most active sovereign wealth funds globally. QIA invests across a wide range of asset classes and regions as well as in partnership with leading institutions around the world to build a global and diversified investment portfolio with a long-term perspective that can deliver sustainable returns and contribute to the prosperity of the State of Qatar.
