Tekel Needs $200 mln Investment -Japan Tobacco

Source from:  reuters.com ISTANBUL, Feb 20 (Reuters)  02/21/2008

Whoever buys Turkish tobacco firm Tekel in a privatisation will need to invest at least $150 to $200 million in it, according to the country head of Japan Tobacco Inc. (2914.T: Quote, Profile, Research), which has not bid for the firm. Turkey's Privatisation Administration said on Monday it had received four bids for Tekel Sigara, but only one came from a major international cigarette firm, British American Tobacco (BATS.L: Quote, Profile, Research). Japan Tobacco offered $1.15 billion for Tekel in 2003 before Ankara cancelled the tender, saying bids were unsatisfactory. Id did not bid in the current tender, which is going on just weeks after parliament passed a law banning smoking in public places. "The timing of the new smoking law will have a negative impact on the tender; that issue could have been handled more carefully," Japan Tobacco's general manager for Turkey, Bilgehan Anlas, told reporters on Wednesday. Anlas said Japan Tobacco had not bid as the timing of the tender did not fit with its international growth strategy. Other bidders for Tekel -- which Turkey has planned to sell since 2001 -- include Turkish energy-to-media conglomerate Dogan Holding DOHOL.IS, bidding in consortium with Citi Venture Capital International (CVCI) and Turkish cigarette wholesaler Tutsab. Private equity firm Cinven [CINV.UL] also bid with a group of Turkish businessmen, while unlisted Turkish builder Limak Insaat bid with Morgan Stanley's private investment arm PI Turkey. Bidders presented sealed-envelope offers on Monday, and will later be asked to raise the bids in an auction. Enditem