TURKEY - Oyak, the Turkish Army Pension Fund, has sold its private pension subsidiary Oyak Emeklilik for €110m to Dutch financial group ING.

Oyak Emeklilik, which was established in 2003 and manages assets of approximately €160m in six separate investment funds, is the first and only voluntary pension fund in Turkey specifically established for private pension fund management.

Some 85% of Oyak Emeklilik's 150,000 members have opted for a private pension plan and 15% for a group scheme. In 2007, its assets rose 60%.

"The transaction provides ING with a great opportunity to enter the fast growing Turkish pension market and gives further impetus to its recently-acquired retail banking operations in the country," the firm said in a statement today.

Under the terms of the agreement, ING will acquire 100% of the shares in Oyak Emeklilik for a total cash consideration of €110m, which will be financed entirely from existing internal resources.

The transaction is subject to customary closing conditions and is expected to be closed and booked in the second half of this year.

ING said Oyak Emeklilik will be integrated into ING Insurance Central Europe and re-branded under the ING brand within the first year of closing of the transaction.

Oyak sold its banking arm, Oyak Bank, to ING Group last year for $2.67bn (€1.98bn).

At the time, Oyak's chief investment officer, Caner Öner commented: "We now have the cash flow to include new asset classes in our portfolio," before announcing the fund was planning to diversify abroad.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com