Kap Notices

Vestel Elektronik Sanayi ve Ticaret AŞ’s Ordinary General Assembly Meeting for the year 2017 will be held to discuss the following agenda items at the address of Raffles İstanbul Zorlu Center, 34340 Beşiktaş/ISTANBUL at 10:00 am on 9 May 2018.

Click here for the Agenda.

Click here for the Invitation.

At its meeting on 11 April 2018, the Company’s Board of Directors took the following decisions.

Vestel Elektronik Sanayi ve Ticaret AŞ recorded TL 55,108,000 of net profit in its consolidated financial statements prepared in compliance with the Turkish Accounting Standards/Turkish Financial Reporting Standards as per the Capital Market Law and related Communiqués and TL 53,197,920.29 of net profit in its statutory financial statements prepared under the Tax Procedure Law.

In accordance with the provisions set forth in the Company’s Profit Distribution Policy; the profit for 2017 is proposed to be added to extraordinary reserves after setting aside the required amount for the first legal reserve and not to be distributed in order to strengthen the Company’s equity and meet the funding requirements for ongoing investments. This proposal will be submitted to the approval of shareholders at the Company’s 2017 Ordinary General Assembly Meeting.

Click here for the Profit Distribution Table.

At its meeting on 11 April 2018, the Company’s Board of Directors took the following decisions.

Taking into consideration the assessment of the Audit Committee dated 11 April 2018, the Company's Board resolved to nominate PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi as the independent auditor for auditing the Company’s financial reports for the fiscal year 2018 inaccordance with the Turkish Commercial Code, the Capital Market Law and related regulations and for carrying out the other duties required under these laws and to submit this selection to the approval of the shareholders at the Company’s 2017 Ordinary General Assembly Meeting.

Pursuant to our material event disclosure dated 26.02.2018, Vestel Elektronik will be granted an incentive for its planned battery factory investment within the scope of Turkish Government’s Project Based Incentive Package, which was announced on April 9,2018 by the Ministry of Economy. 

Vestel Elektronik announced consolidated sales revenues of TL 12,101 mn (US$ 3,317 mn) and net profit of TL 55 mn (US$ 15 mn) in 2017.

Click here for FY17 CMB financials.

Turkish Competition Authority initiated a probe into Vestel Ticaret AŞ, a wholly owned subsidiary of Vestel Elektronik, to determine whether or not the Article 4 of the Law on the Protection of Competition numbered 4054 has been violated. A probe does not necessarily imply that the company subject to the probe has violated the law or will be charged with a fine. Future developments on the subject will be shared with the public.

Zorlu Holding AŞ, the controlling shareholder of Vestel Elektronik Sanayi ve Ticaret AŞ, signed a preliminary agreement for establishing a partnership with GSR Capital, the Chinese investment firm, which strategically invests in innovative fields such as energy systems and battery technologies. The partnership involves two different fields and foreeses total investments of US$4.5 bn.

Within the scope of the afore-mentioned agreement, a battery factory, in which both GSR Capital and Vestel Elektronik will have 50% stakes, is planned to be established to produce battery systems for electric cars and energy storage. The investment will be initiated in 2018 and a 2,000 MW battery packaging plant for the assembly of batteries from battery module/cells will be built in the first stage of the investment. Afterwards, a battery production facility completely devoted to battery production (which will cover the whole value chain from battery chemistry to cell generation) with an annual capacity of 25,000 MW is planned to built until 2023 with a US$2.5 bn investment.

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 9.49 (94.86%) to 9.55 (95.50%) as of February 21, 2018.

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:

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.

Pursuant to our material event disclosure dated 22.12.2017, the negotiations between potential buyers and sellers for the sale of Dongbu Daewoo Electronics Corporation have been finalized and the sellers decided to proceed the transaction with another bidder rather than Vestel Beyaz Eşya Sanayi ve Ticaret AŞ, which is 94.62% owned by Vestel Elektronik.

Under the Joint Initiative Group Cooperation Protocol, which was signed by our controlling shareholder Zorlu Holding AŞ on November 2, 2017 with the intention to participate as a potential investor in Turkey’s Automobile Project, which is being carried out via the coordination of the Ministry of Science, Industry and Technology and the Union of Chambers and Commodity Exchanges of Turkey, technological and financial analysis studies are still continuing. This announcement has been made pursuant to the Article 23/7 of the CMB's Public Disclosure Communique for the purpose of providing updated information to investors.