SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri AŞ (“SAHA”), which is authorised to provide rating services in Turkey in accordance with the Capital Markets Board’s (“CMB”) Corporate Governance Principles, revised up Vestel Elektronik’s Corporate Governance Rating from 9.59 (95.87%) to 9.63 (96.32%) as of February 21, 2020.
The Company’s Corporate Governance Rating has been determined as a result of the evaluations made under four main headings (Shareholders, Public Disclosure and Transparency, Stakeholders, Board of Directors) in accordance with the CMB's Corporate Governance Principles. The breakdown of the Company’s Corporate Governance Rating by sub-section is as follows:
| Sub-Sections | Weights (%) | Rating (%) |
|---|---|---|
| Shareholders | 25 | 94.91 |
| Public Disclosure and Transparency | 25 | 98.44 |
| Stakeholders | 15 | 99.48 |
| Board of Directors | 35 | 94.47 |
| Total | 100 | 96.32 |
The Company’s revised rating, which is determined by SAHA in accordance with the Corporate Governance Principles, confirms Vestel Elektronik’s determination to adopt corporate governance principles and the improvements made in the implementation of necessary policies and measures. The afore-mentioned report is available on our Company's website at www.vestelinvestorrelations.com.
Vestel Elektronik Sanayi ve Ticaret AŞ's stand-alone income statement for the year 2019, which has been submitted to the Tax Authority in accordance with the Tax Procedure Law, can be found in the attachment. The aforementioned income statement is not prepared in accordance with the Capital Markets Board's legislation.
Pursuant to our material event disclosure dated 19.12.2019, Vestel Elektronik submitted its applications to the Capital Markets Board and Borsa Istanbul AŞ for its planned bond issue as of today (17.02.2020).
Pursuant to our material event disclosures dated 08.03.2018, 07.05.2018, 06.07.2018, 04.09.2018 and 02.11.2018, the Turkish Competition Board has finalized its investigation and decided that Vestel Ticaret AŞ, a wholly owned subsidiary of Vestel Elektronik, has not violated the Article 4 of the Law on the Protection of Competition numbered 4054 and as per the Article 16 of the same Law, there is no need to impose an administrative fine on the company. The Competition Board’s decision can be appealed.
Pursuant to our material event disclosure dated 26.09.2014, the scope of the existing brand licensing agreement between our 100% owned subsidiary, Vestel Ticaret AŞ and Sharp Corporation, which is valid until the end of 2024, is further expanded to include the development of a smart product family for the six major household appliance categories (refrigerator, washing machine, dishwasher, electric oven, tumble dryer and wall-mounted air conditioner) for the European market. Under the expanded agreement, Vestel Elektronik targets to reach EUR300 million of revenues in the European market from the sale of Sharp branded products within the next five years.
Vestel Elektronik Sanayi ve Ticaret AŞ’s Board of Directors decided to authorize the Company’s management to carry out the necessary procedures for the planned issuance of up to TL 750 mn of debt instruments in single or multiple tranches with varying maturities of up to maximum 5 years. The instruments will be sold to qualified investors in the domestic market and can be issued as corporate bonds and/or convertible bonds, commercial papers, and as all other kind of debt instruments accepted by Capital Markets Board.
JCR Eurasia Rating evaluated Vestel Elektronik Sanayi ve Ticaret AŞ in a high-level investment grade category and assigned its Long and Short-Term National Ratings as “A (Trk)” and “A-1 (Trk)” respectively along with “Stable” outlooks. In addition, the Long Term International Foreign and Local Currency Ratings have been assigned at the sovereign ceiling of ‘BBB-’ along with “Negative” outlooks.
Vestel Elektronik announced consolidated sales revenues of TL 12,007 mn (US$ 2,132 mn) and net profit of TL 149 mn (US$ 26 mn) in 9M19.
Click here for 9M19 CMB financials.
Pursuant to our material event disclosures dated 05.08.2015, 10.11.2016, 28.08.2018 and 14.12.2018, the Ankara 6th Administrative Court has rejected the annulment of the administrative fine imposed by the Competition Authority on Vestel Ticaret AŞ, our fully owned subsidiary. Vestel Ticaret AŞ has appealed against the decision and the appeal is rejected by the Ankara 8th Administrative Court (“Court”). Vestel Ticaret AŞ has appealed against the Court’s decision within the legal period and the judicial process continues.
Vestel Elektronik signed a Corporate Governance Principles Compliance Rating Agreement with SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri AŞ on August 9, 2019 for the assessment of the Company’s corporate governance rating. The term of the agreement is one year