Vestel Elektronik Sanayi ve Ticaret AŞ sold 5,000,000 Vestel Beyaz Eşya Sanayi ve Ticaret AŞ ("Vestel Beyaz Eşya") shares at a price of TL 23.38 per share on Borsa Istanbul on June 29, 2020 with the aim of increasing the liquidity in the shares, improving the investability of the stock for investors and for expanding the institutional investor base. Following the transaction, the Company's share in Vestel Beyaz Eşya declined to 92.54%.
Vestel Beyaz Eşya Sanayi ve Ticaret AŞ’s Board of Directors made the following decision.
Taking into consideration the assessment of the Audit Committee dated 2 June 2020, the Company’s Board of Directors resolved to nominate KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi to audit the Company’s financial reports for the fiscal year 2020 in accordance with the Turkish Commercial Code, the Capital Market Law and related regulations and to carry out the other duties required under these laws and to submit this selection to the approval of shareholders at the Company’s 2019 Annual General Meeting.
At its meeting on 3 June 2020, the Company’s Board of Directors made the following decisions.
Vestel Beyaz Eşya Sanayi ve Ticaret AŞ recorded TL 568,072,000 of net profit in its CMB financial statements prepared within the framework of the Communiqué on the Principles of Financial Reporting in Capital Markets numbered II-14.1 and in compliance with the Turkish Accounting Standards/Turkish Financial Reporting Standards and audited by PwC Bağımsız Denetim ve Serbest Muhasebecilik Mali Müşavirlik AŞ, and TL 553,612,718 of net profit in its statutory financial statements prepared in accordance with the Turkish Commercial Code and Tax Procedure Law.
Since the amount of legal reserves has reached 20% of the Company’s paid-in capital as per the Article 519 of the Turkish Commercial Code, no first legal reserve has been set aside from the net distributable profit recorded in CMB financials. Accordingly, the net distributable profit is calculated as TL 568,072,000.
In accordance with the Company’s Articles of Association and Dividend Distribution Policy, the Article 12 of the Law No. 7244 published in the Official Gazette dated 17.04.2020 and numbered 31102 and the Provisional Article 13 added to the Turkish Commercial Code, the first dividend is determined as TL 128,766,200, which is calculated as 22.67% of the distributable profit based on CMB financials. After deducting the first dividend of TL 128,766,200 from the distributable profit of TL 568,072,000 a second legal reserve of TL 13,251,800 will be set aside. Accordingly, the Company’s Board of Directors resolved to propose the distribution of TL 128,766,200 of gross cash dividends, which corresponds to a gross cash dividend of TL 0.67772 and a net cash dividend of TL 0.57606 per share from 14.07.2020 and the addition of the remaining amount of TL 411,594,718, after deducting the TL 128,766,200 of first dividend and the TL 13,251,800 of second legal reserve from the TL 553,612,718 of net profit reported in the statutory tax financials to extraordinary reserves and to submit these proposals to the approval of shareholders at the 2019 Annual General Meeting.
Click here for the Dividend Distribution Table
Vestel Beyaz Eşya Sanayi ve Ticaret AŞ's Board of Directors made the following decisions.
Vestel Beyaz Eşya Sanayi ve Ticaret AŞ’s Annual General Meeting for the year 2019 will be held on 30 June 2020 at 12:00 pm at the address of Levent 199 Büyükdere Caddesi No: 199 34394 Şişli/Istanbul in order to discuss and resolve the aforementioned agenda items.
The Board of Directors is authorized to make the invitation for the Annual General Meeting in accordance with the Company's Articles of Association and related regulations.
Pursuant to the Capital Markets Board’s Corporate Governance Principles and Communiqués, the agenda item, the documents and the reports to be discussed at the Annual General meeting will be submitted to the information of the shareholders at the Company’s http://vesbe.vestelinvestorrelations.com/ website under the "Information Memorandum for the Annual General Meeting" heading and the Board of Directors is authorized to make the necessary material event disclosures.
Click here for the Invitation.
Click here for the Agenda.
Vestel Beyaz Eşya reported TL 1,595 mn (EUR 237 mn) of sales revenues and TL 135 mn (EUR 20.1 mn) of net profit for 1Q20.
Click here for the 1Q20 CMB financials.
Pursuant to our material event disclosure dated 25.03.2020, Vestel Beyaz Eşya will resume its production activities as of April 6, which were temporarily suspended during March 30 and April 5 within the framework of the precautions taken to reduce the effects of the global Coronavirus pandemic to protect the health of employees and the public. The plants will start operations with a lower capacity due to measures taken such as rescheduling of shift hours, reduction in the number of employees working per shift, disinfection of work areas during the breaks between the shifts and maintaining social distance in physical working conditions. If circumstances and developments require, an application for short-term work allowance will be considered.
Due to the worldwide effects of the Coronavirus (COVID-19) outbreak and with Europe, which is Vestel Beyaz Eşya’s major export market, becoming the new epicenter of the pandemic, Vestel Beyaz Eşya started to receive requests from its international clients to defer orders. As a result, the Company, which exports most of its output abroad, will suspend production at its plants for one week between March 30 and April 5. The other operations of the Company will continue within the framework of the numerous health and safety measures already taken. Important developments on the subject will be announced to the public.
Vestel Beyaz Eşya announced sales revenues of TL 6,968 mn (Euro 1,098 mn) and net profit of TL 568 mn (Euro 89.5 mn) in 2019.
Click here for FY19 CMB financials.
In line with its long term borrowing strategy, Vestel Beyaz Eşya has signed a credit agreement for a EUR18,350,000 loan with AKA Ausfuhrkredit-Gesellschaft mbH, which will be used to finance the new capacity investments to meet the growing demand from customers as well as strengthen the Company’s market position. Backed by Hermes, the loan has a 10-year term and will be repaid in equal semi-annual installments. Vestel Beyaz Eşya has already started loan drawdowns under the agreement.
Pursuant to our material event disclosure dated 31.12.2019, Mr. Kemal Özgür, who had been serving as the Deputy General Manager Responsible for the Purchasing Department since 2012 and was appointed as the Deputy General Manager Responsible for the Air Conditioner and Water Heater Plant as of December 31, 2019, has voluntarily left his position. Mr. Mehmet Yavuz, serves as the Deputy General Manager Responsible for the Cooking Appliances Plant, has assumed the position of the Deputy General Manager Responsible for the Air Conditioner and Water Heater Plant by proxy.