Turkish Armed Forces Assistance Fund (Oyak) has reached a tentative agreement to acquire British Steel, in a deal which would bring the struggling firm our of insolvency.
The Turkish military pension fund provider is looking to secure the deal before the end of 2019.
More than 5000 people work for British Steel across the UK, with over 3000 of them at their Scunthorpe steelworks. A further 20000 are employed in the supply chain.
The firm fell into compulsory liquidation in May earlier this year, after rescue talks with the government fell through.
British Steel was transferred to the Official Receiver because its shareholders and the government were not able to support the business. The news was welcomed by trade association UK Steel.
Several bids were received for British Steel and the agreement now signed between Ataer Holdings A.S. (Oyak’s investment arm) and the Official Receiver sees the preferred buyer in exclusive talks to confirm their intention to take on the steelmaking business and its subsidiaries.
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 A.S. 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.”