Istanbul Seeking Finance Hub Status Grapples With Delistings

Turkish companies with small free floats are applying to delist from the stock exchange as the government says it’s switching to an emphasis on quality over quantity in its ambitions to make Istanbul a financial center.

New rules make it cheaper for majority shareholders to buy out smaller stakeholders in companies with free floats of less than 5 percent by setting the price at the 30-day average before the announcement and removing any interest payments. Alternatifbank AS, a lender owned by Commercial Bank of Qatar, OMV AG’s Turkish fuel retailer Petrol Ofisi and battery producer Mutlu Aku & Malzemeleri AS are among at least five companies that have expressed intentions to delist since the legislation went into effect at the beginning of the month.