A Turkish Pension Fund, planning a takeover of British Steel, is preparing to commit around £ 1bn to fund the company's revival.
On Monday, August 12, it was revealed that Ataer Holding, which is ready to enter the official exclusive negotiation period for the purchase of British Steel this week, has developed a business plan that involves an investment of around £ 900 million over several years.
This figure is in addition to a government support package that could total £ 300 million in grants, compensation and loans on commercial terms.
Ataer is the Oyak division that oversees the pension funds of the Turkish military.
Insiders said the official liquidator will likely announce as early as Tuesday that Ataer is entering a six to eight week period within which to close the deal.
An investment program worth up to £ 900 million will convince more than 4,000 British Steel workers, unions and ministers that the company has a realistic chance of long-term survival.
British Steel, whose largest production site is in Scunthorpe, went bankrupt in May after bankruptcy after the government decided not to provide the company with £ 30 million under then-owner Greybull Capital.
Approximately 20,000 jobs in the British Steel supply chain depend on the company.
Ataer, which has yet to comment on its interest in entering the UK steel sector, is believed to be planning to commit to producing "Europe's greenest steel" if it succeeds in a takeover.
Insiders said the government funding signed last week would not violate EU government aid rules.
Ministers are also said to have made a decision on the EU carbon credits issue, prompting the company to apply to the government for a £ 120m emergency loan in April.
A Turkish fund has offered a total price of £ 60 million to £ 70 million to take control of British Steel.
Oyak is the largest shareholder in Erdemir, a Turkish steelmaker, which has previously denied any affiliation with the bidding process.
