Category: Turkiye

  • Esin Attorney Partnership Advises Burgan Bank on Syndicated Loan for Trade Financing

    Esin Attorney Partnership Advises Burgan Bank on Syndicated Loan for Trade Financing

    The Esin Attorney Partnership (EAP), a member firm of Baker & McKenzie International, advised Burgan Bank on a USD 117,000,000 and EUR 75,000,000 syndicated multi-tranche term loan agreement with 14 international banks. The lenders were advised by Paksoy and Hogan Lovells.

    The deal was brokered under the leadership of the Arab Banking Corporation (B.S.C.) as the coordinator and initial mandated lead arranger and bookrunner, Mashreqbank PSC as the agent and Burgan Bank K.P.S.C, Commerzbank Aktiengesellschaft, Filiale Luxemburg, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and Standard Chartered Bank as the initial mandated lead arrangers and bookrunners.

    The transaction was led by Esin Attorney Partnership’s Head of Banking and Finance, Partner Muhsin Keskin, and Baker McKenzie’s Global Head of Banking & Finance, Partner Michael Foundethakis from Baker & McKenzie’s Paris office. The team was supported by Erdi Yildirim.

    Editor’s Note: This article has been updated to correctly identify the firms advising the lenders on the deal. 

  • Schoenherr Advises Greiner Packaging on Acquisition of Turkish Packaging and Labelling Company

    Schoenherr Advises Greiner Packaging on Acquisition of Turkish Packaging and Labelling Company

    Schoenherr has advised Austria’s Greiner Packaging International GmbH on its acquisition of TGM1, thereby assuming ownership of all shares in Teknik Plastik Greiner Ambalaj Sanayi Ve Ticaret Anonim Sirketi, a prominent Turkish packaging and labelling company. Closing took place on August 23, 2017.

    Greiner acquired 51% ownership in Teknik Plastik Greiner Ambalaj in 2015. TGM1 owns the remaining 49%.

    According to Schoenherr, “as a consequence of this acquisition, Greiner is now the market leader in Turkey in the rigid plastic packaging sector for dairy products. The complete takeover of the Turkish dairy product packaging company strengthens the plastics experts’ involvement in the Middle East and in Northern Africa. Greiner is one of Europe’s leading plastic packaging manufacturers in the food and non-food sector.”

    “We were pleased to support one of the leading packaging companies in the world in reinforcing their involvement in Turkey,” commented Schoenherr Istanbul Attorney Burke Serbetci, who led the project. “Owing to this transaction, Greiner is set to benefit from its fortified engagement in Turkey, as a gateway to other regions.” 

    The Schoenherr team consisted of Serbetci and Attorneys Murat Kutlug, Busra Ozden, and Alara Baki.

  • White & Case Advises Lenders on Turkish Hospital PPP

    White & Case Advises Lenders on Turkish Hospital PPP

    White & Case has advised the lenders and hedging banks, including JBIC, NEXI, SMBC, MUFG, Standard Chartered Bank, Nippon Life Insurance Company, Dai-ichi Life Insurance Company, and the Iyo Bank, on the USD 1.83 billion financing of the 2,682-bed Ikitelli Hospital public private partnership (PPP) in Istanbul, Turkey. Willkie, Farr & Gallagher advised the consortium leading the financing, construction, and operation of the Ikitelli Hospital campus, which includes Ronesans Health Investment and Sojitz.

    According to White & Case, “the project is part of Turkey’s EUR 12 billion hospital PPP program, which was launched in 2011 and aims to improve the country’s network of healthcare facilities.” According to the firm, “Ikitelli Hospital will be one the world’s largest hospitals, creating 10,000 jobs and providing services to 23,600 patients daily.

    The White & Case team advising on the transaction was led by Partners Victoria Westcott, Jacques Bouillon (both Paris) and Toshio Dokei (Tokyo), with support from Associates Florent Rigaud, Renaud Nething, Elaine Porter, Olivier Le Bars, Abdullahi Mohammed (all Paris), Shusuke Fukunaga and Andrew Robinson (both Tokyo), legal assistant Muriel Sani, and trainee solicitor Jacopo Giunta (both Paris).

    Editor’s Note: After this article was published, the Ergun Law Firm confirmed that it worked alongside White & Case in advising the lenders on the deal, and Bezen & Partners confirmed that it had advised the sponsors.

    The Ergun Law Firm team consisted of Partner Cagdas Evrim Ergun and Associate Ayca Ozbek in the firm’s Ankara office, and Partner Sermin Yurdacan Fencimen and Associate Handan Tuna in Istanbul.

  • Egemenoglu and Butzel Long Representing Lotus Holding in ICSID Arbitration Against Turkmenistan

    Egemenoglu and Butzel Long Representing Lotus Holding in ICSID Arbitration Against Turkmenistan

    Egemenoglu is working alongside co-counsel Butzel Long in representing Lotus Holding Anonim Sirketi in an Energy Charter Treaty claim against Turkmenistan at ICSID involving the Turkish group’s investment in two power plants and a refinery. Curtis Mallet-Prevost Colt & Mosle is representing Turkmenistan in the action, which is based on both the ECT and the 1997 Turkey-Turkmenistan bilateral investment treaty.

    The group is alleging various breaches of the ECT and of the discriminatory behavior, expropriation, most favored nation, and fair and equitable treatment provisions of the BIT.

    This marks the second time that Egemenoglu and Butzel Long have been instructed to bring an ICSID claim against Turkmenistan, following a 2016 claim made by Turkish construction company Gorkem involving the construction of a USD 12 million shopping mall, which remains pending. Curtis Mallet-Prevost has represented Turkmenistan in all seven previous cases it has faced at ICSID. 

    Lotus operates in Turkmenistan through its subsidiary, Lotus Enerji, which has undertaken eight projects in the Central Asian state. The current dispute reportedly involves one of those eight: the construction of two 254-megawatt electric power plants and a state-owned refinery.

    Partner Egemen Egemenoglu is leading the Egemenoglu Law Firm team, with Partner Akin Alcitepe advising the Butzel Long team.

    Ali Gursel is leading the Curtis Mallet-Prevost Colt & Mosle team.

  • Esin Attorney Partnership Advises Sika Turkey on Acquisition of ABC Sealants

    Esin Attorney Partnership Advises Sika Turkey on Acquisition of ABC Sealants

    The Esin Attorney Partnership has advised specialty chemicals company Sika Yapi Kimyasallari A.S. on the acquisition of ABC Sealants, a leading Turkish-based manufacturer of sealants and adhesives.

    According to the Esin Attorney Partnership, “the acquisition will allow Sika to better serve its Turkish customers as well as to expand its business in the Middle Eastern and African markets, further its production capacity, and strengthen its distribution channels. Sika and ABC Sealants will profit from cross-selling opportunities.”

    Commenting on the acquisition, Esin Attorney Partnership Partner Duygu Turgut, who led the firm’s team on the deal, stated, “We are very proud to complete another crucial acquisition. Thanks to Turkey’s strategically and geographically important location, the targets will continue to serve as a regional hub for multinational entities’ global businesses. We believe this acquisition will strengthen Sika’s market position in Turkey and expand the capacity of its distribution channels.”

    Turgut was supported by Esin Attorney Partnership Associate Orcun Solak and Trainee Sena Calin.

    The Esin Attorney Partnership did not reply to an inquiry about the identity of the sellers and their counsel.

  • An Overview of the Law on Human Rights and Equality Institution of Turkey

    The Turkish Law on Human Rights and Equality Institution of Turkey (the “Law”) entered into force on April 20, 2016, replacing its predecessor (the Law on Turkish Human Rights Institution).

    The Law established the Human Rights and Equality Institution of Turkey (the “Institution”), the mission of which is to carry out activities to protect and improve human rights in Turkey, ensure the right to equal treatment of all persons, prevent discrimination in enjoying human rights and freedoms recognized by law, and combat torture and ill-treatment. The Institution – which replaced the predecessor Human Rights Institution – was established to function as the national prevention mechanism in these regards. Because the Institution’s executive organ, the Human Rights and Equality Board, has recently been fully appointed, it is timely that we review some of the relevant provisions of the Law for Turkish employers.

    At its core, the Law prohibits all sorts of discrimination based on gender, ethnicity, skin color, language, religion, beliefs, philosophical and political views, national origin, wealth, birth status, marital status, medical conditions, disability, and age.

    The Law also introduces explicit definitions and denotes new mandates for equality and non-discrimination, including for employers. The Law stipulates that institutions which are responsible for guaranteeing a person’s human rights, equal treatment, and non-discrimination shall be obliged to take necessary measures to end any relevant breach, prevent its repetition, and ensure compliance with the Law through legal and executive means. As such, public institutions and organizations offering services such as education and training, judiciary, law enforcement, health, transportation, communication, social security, social services, social welfare, sports, accommodation, culture and tourism, and the like; professional organizations; and real persons and private legal entities may not discriminate against persons who are benefiting from their services, who have applied to use their services, or are interested in obtaining information about their services.

    The Law defines nine types of prohibited discriminatory behavior. The most relevant of these categories for employers are: (1) the prohibition of all sorts of direct and indirect discrimination in hiring practices, and (2) the prohibition of intimidation/harassment in the workplace.

    Non-Discrimination by Employers

    The Law prohibits employers (as well as persons authorized by employers) from discriminating against any of the following persons on any work-related processes, including the provision of information, application, selection criteria, recruitment requirements, and termination of the work relation: (1) employees or applicants for employment; (2) persons who are in a workplace for practical work experience or who apply for this purpose; and (3) persons who want to learn about the workplace or the relevant business to be employed in any capacity, or to obtain practical work experience.

    The prohibition on non-discrimination is wide in its scope and includes job listings, the workplace, work conditions, guidance services at work, on-the-job training, promotions and benefits, among other things. Furthermore, employers cannot reject a job applicant based on pregnancy, motherhood, or childcare needs.

    Notwithstanding the foregoing, the Law also specifies that the following cases, among others, cannot be deemed as discrimination prohibited by the Law: (1) different treatment in appropriate manner because of the existence of compulsory occupational requirements in the field of employment; (2) in cases where the employment of a particular gender is compulsory; (3) age limitations due to the obligations of the job, and age-specific treatment in a manner proportionate and necessary for the relevant employment; (4) employment of members of a certain religion by institutions of that religion (but only for the purposes of religious services or religious training); (5) the setting of membership criteria by associations, non-profits, political parties and professional organizations; (6) necessary and proportional different treatment in order to eradicate existing inequalities; and discrimination based on the immigration status of non-citizens.

    Intimidation/Harassment in the Workplace

    The Law also specifically prohibits intimidation in the workplace, which is defined as the taking of any intentional action based on the non-discrimination bases listed above with the aim of excluding, isolating or alienating an employee. The Law further prohibits harassment in the workplace, which includes any offensive, defamatory, derogatory, or embarrassing behavior (including in a psychological or sexual manner) based on one of the non-discrimination principles of the Law and that has the purpose of, or results in, the infringement of human dignity.

    Compliance

    The Institution has the authority to monitor compliance by and levy administrative fines for violations of the requirements of the Law on employers. As such, employers should at all times be mindful of the foregoing obligations, and implement necessary measures and processes to comply with them.

    By Noyan Turunc, Founding Partner, and Didem Bengisu, Attorney, Turunc

    This Article was originally published in Issue 4.6 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • BASEAK Advises Founding Shareholder of Grup Florence Nightingale Hastaneleri on Buy-Back of Shares

    BASEAK Advises Founding Shareholder of Grup Florence Nightingale Hastaneleri on Buy-Back of Shares

    Balcioglu Selcuk Akman Keki Attorney Partnership is representing the founding shareholder of Grup Florence Nightingale Hastaneleri A.S. with respect to the buy-back of 50 percent of the shares of the company from Fiba Health Investments Inc., which had invested in the group back in 2014.

    Florence Nightingale Hastaneleri Holding A.S. is controlled by Turk Kardiyoloji Vakfi (the Turkish Cardiology Foundation). According to BASEAK, “the target group consisted of eight companies, owning and operating five hospitals and two medical centers in Istanbul. The competition clearance required for the transaction was obtained.”

    The BASEAK team consisted of Senior Partner Galip Selcuk, Counsel Tulu Harsa, and Associate Bike Aybeniz Aksoy.

    BASEAK did not reply to an inquiry about counsel for the sellers on the deal.

  • BASEAK Advises on LCI Education’s Acquisition of Minority Shares in Turkish Subsidiary

    BASEAK Advises on LCI Education’s Acquisition of Minority Shares in Turkish Subsidiary

    Balcioglu Selcuk Akman Keki Attorney Partnership has advised LCI Education’s on the company’s acquisition of the remaining 20% minority shares held by local shareholders in its Turkish subsidiary.

    According to Dentons, the LCI Education network, which is headquartered in Canada and is present on five continents, “consists of 22 post-secondary campuses in 12 countries, and some 1,500 employees offering instruction to over 10,000 students throughout the world each year.”

    The BASEAK team was led by Senior Partner Dogan Eymirlioglu, supported by Associates Nil Sonat Gurdal and Denizhan Uslu.

    The firm did not reply to an inquiry about counsel for the sellers.

  • BASEAK Advises Statkraft Enerji Anonim Sirketi on Preparation to Sell Cetin Hydroelectric Power Plant

    BASEAK Advises Statkraft Enerji Anonim Sirketi on Preparation to Sell Cetin Hydroelectric Power Plant

    Balcioglu Selcuk Akman Keki Attorney Partnership has advised Statkraft Enerji Anonim Sirketi on its preparation to sell the Cetin Hydroelectric Power Plant Project to potential buyers. 

    BASEAK described Statkraft as “a leading company in hydropower internationally and Europe’s largest generator of renewable energy,” and reports that “the group produces hydropower, wind power, gas-fired power, and district heating and is a global player in energy market operations.” The company has 3800 employees in over 20 countries.

    The Cetin Hydroelectric power plant is located in Siirt, Turkey, and, when operational, it will have a total capacity of 517 MW. According to BASEAK, “it is the biggest hydro power plant project being sold this year.”

    The firm’s advice included: (1) conducting pre-due diligence work and vendor due diligence and preparing the due diligence report; (2) assisting with the preparation of responses to the queries of a potential buyer at the due diligence stage; (3) drafting, revising and negotiating the Share Purchase Agreement; and (4) assisting the client in closing formalities, including necessary filings, related to the Cetin Hydroelectric Power Plant Project.

    The BASEAK team consisted of Partner Selim Keki, Counsel Ceren Su, and Associates Hande Yilmaz and Emre Ozkan.

  • Yegin Ciftci Advises Ajinomoto on Acquisition of Remainder of Kukre

    Yegin Ciftci Advises Ajinomoto on Acquisition of Remainder of Kukre

    The Yegin Ciftci Attorney Partnership has advised the Japanese food giant Ajinomoto on its acquisition of the remaining 50% of Kukre Gida ve Ihtiyac Maddeleri Nakliyat ve Ozel Egitim Hizmetleri Ticaret ve Sanayi Anonim Sirketi. Taboglu & Demirhan reportedly advised the sellers on the deal.

    According to Yegin Cifti, “Ajinomoto Co. Inc., a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals which already owned a 50 percent stake in Kukre … signed a new deal to buy the remaining 50 percent for approximately TRY 181 million (approximately USD 51.36 million).” The deal, which was announced on August 18, 2017, gives Ajionomoto — which acquired the first 50% in 2013 — full ownership of Kukre, the parent company of Turkey’s long-established food brand Kemal Kuukrer, making it a wholly-owned subsidiary.”

    The transaction was led by a Yegin Ciftci Attorney Partnership team consisting of Partner Itir Sevim Ciftci and Counsel Kemal Aksel, assisted by Associate Cansu Aras.

    In 2013, Ajinomoto Co. acquired a 50% stake in premium brand food company Kükre, and has been strengthening its existing business in Turkey and expanding business in new areas of food. 

    Editor’s Note: After this article was published Taboglu & Demirhan confirmed that it advised sellers Sabri Gulel, Cavit Gulel, and Serkan Gulel on their share of the previously family-owned business.  The firm’s team was led by Partner Esin Taboglu, supported by Senior Associate Galya Kohen Benbanaste.