Turkey’s military pension fund, Ataer, has reached a deal in principle to buy British Steel out of insolvency.
Heads of an agreement for the purchase have been agreed, triggering a period of detailed due diligence ahead of the company’s full sale.
The Turkish Armed Forces Assistance Fund, known as Oyak, which owns Ataer, said it plans to take over British Steel by the end of the year.
British Steel employs 5,000 people, with 3,000 in Scunthorpe, 800 in Teesside and the rest in France, the Netherlands and other offices around the world. It was placed in compulsory liquidation in May.
Another 20,000 jobs in the supply chain were put at risk by the company’s collapse.
In a statement on British Steel’s website, the official receiver said: “Following discussions with a number of potential purchasers for the British Steel group over the past few weeks I am pleased to say I have now received an acceptable offer from Ataer Holdings AS for the purchase of the whole business and I am now focusing on finalising the sale.
“I will be looking to conclude this process in the coming weeks, during which time British Steel continues to trade and supply its customers as normal. I would like to thank all employees, suppliers and customers for their continued support which has been essential to get to this point.”
Oyak released a statement on its website, which said: “In line with our goal of regional loyalty, we have reached agreements to acquire the British industry British Steel, laying the foundation for great success. Ataer Holding, which we own, acquired the right to be the only company (exclusivity) to conduct detailed financial, legal and operational review with its strategic future plan for British Steel.”