Is History Repeating Itself

Capital Markets Board of Turkey’s extended the time given to the Board of Directors of Turk Tuborg Bira ve Malt Sanayii A.Ş. to collect the unfair amount paid to Carlsberg as a license fee and published it in the weekly bulletin. Related warning was issued in the month of September by CMB after examining the accounts of the company stating that the unfair amount paid in the years of 2002 and 2003 to Carlsberg as a license fee is considerably higher than its peers. If the amount is not collected from Carlsberg in two months period, CMB has the authority to bring the issue to the court.

It is striking what the investors suffer from Turk Tuborg. Here is the history of bad governance;

1995-1997: The majority shareholder of Turk Tuborg namely Yasar Group was ordered to compensate the company for "a series of improper share and real-estate transactions” after an audit performed by CMB.

1998-1999: Yasar authorized a series of transactions whereby Tuborg bought shares in Yasarbank, allegedly to save the bank from bankruptcy. With losses totalling over US $1 billion, Yasarbank was placed under the supervision of the Central Bank Deposit Insurance Fund in 1999.

1999: CMB warned Yasar Group for selling Turk Tuborg’s real estate under its fair value and donate some to the Selçuk Yaşar Sport and Education Foundation.

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