Pursuant to our material event disclosures dated 14 March 2024 and 19 April 2024, the issuance certificate relating to issuance of debt instruments abroad, which was notified to us by the Capital Markets Board (SPK) on April 25, 2024 (today), is attached for your information.
Pursuant to our material event disclosure dated 14.03.2024, Capital Markets Board's approval of our application to issue debt instruments abroad has been announced in the Capital Markets Board's bulletin dated 18.04.2024 and numbered 2024/19.
In accordance with our Company's brand-oriented, strategic global growth objective, a Share Purchase Agreement is executed on 8 April 2024 (today) between Vestel Holland B.V., a 100% indirect subsidiary of our Company and Elektroskandia Sverige AB to acquire all of the 25,000 shares with a nominal value of 1 Swedish Krona (SEK) each, representing the share capital of Cylinda AB, which operates in the white goods sector and registered with Swedish Companies Registration Office under the registration number 559450-8375, provided that the required legal clearance is obtained from the Swedish Competition Authority and payment of the share purchase amount to be adjusted according to the terms and conditions of the share purchase agreement is made on the closing date. This strategic investment will help our Company achieve its long-term target of sustainable growth and contribute to increasing its market share in Northern European countries in particular.
Due to the uncertainty surrounding the transaction until the negotiations between the parties regarding the share purchase are concluded with the execution of the Share Purchase Agreement, in order to avoid misleading investors and adversely affecting our Company's bargaining power and activities, particularly in terms of competition laws, the disclosure of such information has been postponed as per the Company's Board of Directors resolution dated 14.11.2023 and numbered 2023/46 within the scope of Article 6 of the Capital Markets Board's Communiqué on Material Events Disclosure.
Vestel Elektronik announced consolidated sales revenues of TL 112,216 mn and net profit of TL 1,450 mn in 2023.
Click here for FY23 CMB financials.
The main messages shared during today's (04.04.2024) press conference are presented to the information of the public in the attached press release.
The second coupon payment amounting to TL 59,836,000 on the TL 500,000,000 nominally valued commercial paper, which was sold to qualified investors on September 18, 2023 with a maturity of 283 days and trades with the ISIN Code of TRFVSTL62423, was made as of today. The interest rate for the third coupon payment has been set as 14,5517%.
The second coupon payment amounting to TL 35,153,700 on the TL 300,000,000 nominally valued commercial paper, which was sold to qualified investors on September 15, 2023 with a maturity of 265 days and trades with the ISIN Code of TRFVSTL62415, was made as of today. The interest rate for the third coupon payment has been set as 11.6773%.
In accordance with the authorization granted by article 11 of the Company's Articles of Association; the Board of Directors resolved to take all necessary actions and apply to the Capital Markets Board (CMB), the Central Securities Depository and other authorities and institutions for the issuance of debt securities up to a total amount of USD 500,000,000 or an equivalent amount to be sold outside Turkey through one or more issuances within one year from the date of the approval of CMB. In line with this decision, an application was made to the Capital Markets Board on March 14, 2024. Following the approval of the issuance certificate by the Capital Markets Board, the final amount, maturity, and interest rate of the issuance will be determined considering the market conditions on the issuance date, and a final decision regarding the issuance will be made. Due to the uncertainty of the debt instrument issuance until the outcome of the credit rating service received and the evaluation of the suitability of the market conditions, our Company's decision to conclude the financial consultancy and credit rating service agreements for the debt instrument issuance and to evaluate the debt instrument issuance has been postponed until the issuance decision is taken with the Board of Directors' decision dated 18.12.2023 within the scope of Article 6 of the Capital Markets Board's Communiqué on Material Events Disclosure.
Pursuant to our PDP statements dated 21.03.2019, 07.12.2020, 27.01.2023 and 29.11.2023; the 13th Chamber of the Council of State accepted the appeals of the Competition Authority and Vestel Ticaret AŞ (Vestel Ticaret), a wholly-owned subsidiary of our Company and decided to annul the appellate decision, affirming the legality of the Competition Board's decision and that the file should be sent back to the Court of Appeal (Ankara 8th Administrative Trial Chamber) to be decided in favor of Vestel Ticaret and Whirlpool (Whirlpool Ev Aletleri Pazarlama ve Ticaret AŞ and Whirlpool Beyaz Eşya Sanayi ve Ticaret AŞ), with its decision dated 10.04.2023 and numbered 2023/206 E., 2023/1767 K. Based on the reversal decision of the Council of State, the file was sent to Ankara 8th Administrative Trial Chamber, and in order to ensure that the Council of State's reversal decision was fulfilled, the investigation initiated against Whirlpool and Vestel Ticaret was terminated by the Competition Authority's decision numbered 23-37/689-238. At this stage, Ankara 8th Administrative Trial Chamber, with its decision numbered 2023/1627 E. and 2024/395, decided to reject the plaintiffs' appeal, complying with the reversal decision of the 13th Chamber of the Council of State. Thus, due to Whirlpool's decision to terminate its activities in Turkey, the agreement regarding the after-sales services of Whirlpool products in the market to be provided by Vestel Ticaret was found to be lawful by the decision of the Ankara 8th Administrative Trial Chamber. It is permissible procedurally to appeal against the decision in question.
A non-binding memorandum of understanding (MoU) - which is valid for a period of three months and can be extended for another three months, if the parties agree - has been executed on March 12, 2024 between Vestel Komünikasyon Sanayi ve Ticaret A.Ş., an indirectly wholly-owned subsidiary of Vestel Elektronik Sanayi ve Ticaret A.Ş. and Huizhou Desay ESS Co., Ltd., a company based in China and indirectly wholly-owned by Shenzhen Desay Battery Technology Co., Ltd., for a potential cooperation in the field of storing renewable energy with lithium battery systems in Türkiye and in other markets where competitive advantage can be achieved. The cooperation will also encompass the design, assembly, manufacturing and sales of energy storage systems and will contribute to our Company’s sustainability goals and efforts. The developments will be fully and timely disclosed to the public.