In its periodic evaluation, JCR Eurasia Rating has evaluated Vestel Elektronik Sanayi ve Ticaret AŞ's consolidated structure and affirmed the Company's Long-Term National Issuer Credit Rating at "A (tr)" with ‘Stable' outlook. The Company's Long Term International Foreign and Local Currency Issuer Credit Ratings and outlooks were kept as "BB/Negative".
Pursuant to our material event disclosures dated 21.03.2019, 07.12.2020 and 27.01.2023, in the negative determination application made to the Competition Authority by Vestel Ticaret AŞ (Vestel Ticaret), a wholly-owned subsidiary of our company, on 14.05.2019, it was requested to allow an agreement to be signed between the parties for Vestel Ticaret to provide after-sales services for existing Whirlpool products in the market due to the decision of Whirlpool Ev Aletleri Pazarlama ve Ticaret AŞ and Whirlpool Beyaz Eşya Sanayi ve Ticaret AŞ (Whirlpool) to terminate their activities in Turkey. In the same period, Whirlpool authorized services filed a complaint with the Competition Authority, claiming that the agreement in question was contrary to the Competition Law. As a result of its preliminary research, the Competition Board, with its decision dated 12.11.2019 and numbered 19-39/612-265; decided to reject the complaints of Whirlpool authorized services and not open an investigation and ruled that the contract between the parties was in compliance with the legislation considering that Vestel Ticaret and Whirlpool, the latter of which terminated its activities in Turkey, were not rival enterprises. In the lawsuit filed by the complaining undertakings requesting the annulment of the said Board Decision, Ankara Regional Administrative Court 8th Administrative Case Chamber decided to annul the Board Decision in question with the decision dated 02.11.2022 and numbered 2022/148 E. and 2022/1272 K. (Appeal Decision) on the grounds that while an investigation should be opened by the Competition Board, making a decision with a preliminary investigation was not sufficient. Following the Appeal Decision, the Competition Authority decided to open an investigation against Whirlpool and Vestel Ticaret with the decision numbered 23-01/11-M. A simultaneous appeal against the said Appeal Decision was made by Vestel Ticaret and Competition Authority to the 13th Chamber of the Council of State, requesting a stay of execution. The 13th Chamber of the Council of State accepted the appeals of the Competition Authority and Vestel Ticaret and decided that the Appeal Decision should be overturned, the Competition Board's decision was in accordance with the law and the file would be sent back to the relevant court to be decided in favor of Vestel Ticaret and Whirlpool, with the decision dated 10.04.2023 and numbered 2023/206 E., 2023/1767 K. The justification of the said decision of the 13th Chamber of the Council of State briefly stated that: (i) The agreement made between Whirlpool and Vestel Ticaret for the provision of after-sales services due to Whirlpool's exit from the Turkish market by terminating its sales activities does not aim to prevent, distort or restrict competition; (ii) It is for the benefit of the consumer that Vestel Ticaret provides after-sales services for Whirlpool products available in the market, and (iii) Considering that Whirlpool and Vestel Ticaret are not competitors due to Whirlpool's exit from the Turkish market it is clearly stated that the agreement between the parties complies with the legislation, leaving no room for doubt. The file, which was re-sent to Ankara 8th Administrative Case Chamber based on the reversal decision of the Council of State, has received the number 2023/1627 E. and the judicial process continues. At this stage, in order to fulfill the requirements of the Council of State's decision to overturn, the investigation initiated against Whirlpool and Vestel Ticaret was terminated by the Competition Authority's decision numbered 23-37/689-238.
The first coupon payment amounting to TL 18,000,600 on the TL 190,000,000 nominally valued commercial paper, which was sold to qualified investors on August 25, 2023 with a maturity of 362 days and trades with the ISIN Code of TRFVSTL82413, was made as of today.The interest rate for the second coupon payment has been set as 9,474% (simple annual interest 38%).
Vestel Elektronik completed the sale of a TL 517,000,000 corporate bond with floating coupon payments with a maturity of 379 days to domestic qualified investors, the transfer of the securities to the customer accounts will be completed today. The interest rate of this instrument is 48.50% annual simple for the first coupon, 48.50% annual simple or the higher of TLREF + 2.50% (BIST TLREF Index Change + 250 Basis Points Additional Return) for the other coupons. Ak Yatırım Menkul Kıymetler AŞ has acted as the financial intermediary for the issue.
Vestel Elektronik completed the sale of a TL 214,000,000 commercial paper with fixed coupon payment with a maturity of 162 days to domestic qualified investors, the transfer of the securities to the customer accounts will be completed today. The interest rate of this instrument is 45.50% annual simple. Ak Yatırım Menkul Kıymetler AŞ has acted as the financial intermediary for the issue.
TL 680,000,000 nominally valued Commercial Paper, which was sold to qualified investors on July 19, 2023 with a maturity of 126 days and with the ISIN Code of TRFVSTLK2319, was redeemed as of today (November 22, 2023) with completion of the first coupon payment amounting to TL 89,201,720 and the principal payment of TL 680,000,000.
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Vestel Elektronik reported TL 61,802 mn (US$ 2,795 mn) of sales revenues and TL 469 mn (US$ 21 mn) of net profit for 9M23.
Click here for the 9M23 CMB financials.
In accordance with its Board's decision dated 07.11.2023, Vestel Elektronik Sanayi ve Ticaret AŞ decided to apply to the Capital Markets Board of Türkiye to issue up to TL 3,000,000,000 ( three billion Turkish Lira) of TL denominated debt instruments in varying terms up to 5 (five) years, in single or multiple tranches, in the form of sales to qualified investors without being offered to the public.
Pursuant to our material event disclosure dated March 8, 2018, the Competition Board, with the decision of dated 02.01.2020 and numbered 20-01/13-5, decided that Vestel Ticaret AŞ (Vestel Ticaret) did not violate Article 4 of Law No. 4054,therefore there was no need to impose an administrative fine in accordance with Article 16 of the same Law as a result of the investigation carried out by the Competition Authority regarding Vestel Ticaret, a 100% subsidiary of our Company. In the lawsuit filed with the request for annulment of the said Board Decision; Ankara 4th Administrative Court, with the decisions numbered 2022/2198 E. and 2023/60 K. and dated 11.01.2023, decided to annul the administrative action in question, with the possibility of appeal. Against the decision of the Administrative Court, the Competition Authority, as a party, and Vestel Ticaret, as the intervener, filed an appeal. Ankara 8th Regional Administrative Court decided with its decisions numbered. 2023/412 E. and 2023/623 K. and dated 10.05.2023, to accept the appeal applications of the Competition Authority and Vestel Ticaret; and to cancel the decision made by the Ankara 4th Administrative Court; and the Court examined the alleged file on its merits and decided to reject the case on the grounds that the information transfer/information sharing could not be proven with legally acceptable, concrete evidence beyond any doubt that it was carried out with the common will of both enterprises. Finally, the plaintiff filed an appeal against this decision; and with the decisions of the 13th Chamber of the Council of State dated 19.10.2023 and numbered 2023/2388 E and 2023/4225 K; it was decided unanimously to reject the plaintiff's appeal request and to confirm the decision of the Regional Administrative Court in question. Thus all ordinary legal remedies are exhausted; and the Competition Board's decision stating that Vestel Ticaret did not violate Article 4 of Law No. 4054, therefore there was no need to impose an administrative fine on Vestel Ticaret in accordance with Article 16 of the same Law, has also become administratively absolute and final.