Koza shareholders expected to seek compensation after illegal seizure

Shareholders of Koza ipek Holding are likely to take legal action to obtain compensation for losses incurred when the companyand’s management was taken over by authorities this week, experts said on Thursday.
The Handurriyet daily quoted opposition Republican Peopleand’s Party (CHP) party council member Yasemin andOney Cankurtaran as saying on Thursday, and”The announcement that a trustee was to take over the management of the company while a trading session was under way is a violation of capital markets regulation. Such an action punishes shareholders, since they lose money.and” Koza ipek Holding has three of its subsidiaries currently trading on the main Turkish stock exchange, the Borsa Istanbul (BiST) and 70 percent of the shares of those companies belong to foreign partners. One of these publicly traded firms is Turkeyand’s sole gold miner, Koza Altin, while the remaining two are oil and gas company ipek Doial Enerji and another mining company, Koza Anadolu Madencilik. Turkeyand’s Capital Markets Board (SPK) routinely monitors activities of all firms listed on the exchange and has not reported any abuse by the Koza firms so far.
and”In this process, Koza ipek shareholders have the right to file lawsuits because they incurred losses due to an act that was contrary to the regulations,and” Cankurtaran said. She added that it was important to find out if any shareholders had been informed of the decision while the stock was at its highest point, and if they had wrongfully sold their shares as a result of the information. Cankurtaran previously served as a member of the board at the Istanbul Stock Exchange (iMKB) — the former version of BiST.
In the days following the announcement that a trustee panel was to be appointed to oversee Koza Ipek Holding, shares in the three companies dropped by as much 30 percent. After a request from Prosecutor Musa Yanducel, Judge Yunus Sanduer of the Ankara 5th Criminal Court of Peace ruled on Monday for the takeover of the administration of the holdingand’s 22 companies. These included the two television stations, two newspapers and one radio station that have a critical editorial position toward the government. All the trustees appointed by the court to the boards of directors of the companies that make up Koza ipek Holding are either members of or support the AK Party, even though trustees appointed to companies seized in this manner are required to be independent and objective.
Companies belonging to the group were raided on separate occasions last month. On Monday, CEO Akin ipek stressed that the campaign targeting his group was launched after he refused to join what is called the and”pool media,and” which refers to a pool of funds contributed by pro-government businessmen in return for favors in the form of public tenders over five years.
and”If I had entered that pool as well, I would have been much richer and the judiciary would have protected me. But I was not involved in such an illegitimate business, and now they have appointed a trustee to my companies. I prefer continuing my life without wealth, rather than being in that pool, which is full of lies and slander,and” ipek added.

SOURCE: TODAYS ZAMAN