Based on Borsa Istanbul’s assessments, Vestel Elektronik will be included in the BIST Sustainability Index once again for the November 2017-October 2018 period. The calculation of the index, which comprises publicly traded companies with a high rating on corporate sustainability performance, will start as of November 1, 2017.
Within the scope of its strategy to strengthen its position in developing markets, Vestel Elektronik has submitted a non-binding preliminary offer to acquire all of the shares of “Dongbu Daewoo Electronics”, the South Korean white goods manufacturer. The Company’s evaluations and negotiations with the sellers are still ongoing before a final offer.
Since a final offer was not certain at the stage of the preliminary bidding the Company’s Board of Directors resolved to postpone the public announcement regarding the afore-mentioned acquisition until the signing of a binding agreement within the scope of the Capital Markets Board’s Communiqué on Material Events Disclosure.
Pursuant to our material event disclosure dated 13.07.2017, the Capital Markets Board of Turkey approved the “Memorandum of Information” prepared for the planned share sales in the Company’s 94.62% owned subsidiary Vestel Beyaz Eşya Sanayi ve Ticaret AŞ (“Vestel Beyaz Eşya”). Vestel Elektronik intends to sell shares representing up to 5% of Vestel Beyaz Eşya’s share capital (corresponding to a nominal value of TL 9,500,000) on Borsa Istanbul and/or the wholesale market depending upon the market conditions.
Pursuant to our material event disclosure dated 27.09.2017, the syndicated loan has been drawn by the Company.
In line with its strategy to increase long term borrowing and create new sources of finance, Vestel Elektronik signed a US$120 mn syndicated loan agreement with 6 international banks, the majority of which are based in GCC (Gulf Cooperation Countries) and have no prior credit relationship with the Company, on September 27, 2017. The loan is comprised of both US Dollar and Euro tranches and has a 5-year maturity with a 1-year grace period. The loan is expected to be used in the first week of October.
Standard & Poor’s affirmed Vestel Elektronik's corporate credit rating at "B-" on September 20, 2017. The outlook on rating is negative.
Click here for S&P’s press release.
Vestel Elektronik signed a Corporate Governance Principles Compliance Rating Agreement with SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri AŞ for the renewal of the corporate governance rating of the Company on August 25, 2017. The agreement will be valid for one year.
Pursuant to our material event disclosure dated 04.08.2017, Vestel Electronics Gulf DMCC, which was announced to be established in our material event disclosure dated 06.06.2017, has been founded and registered.
Vestel Elektronik announced consolidated sales revenues of TL 5,341 mn (US$ 1,469 mn) and net profit of TL 132 mn (US$ 36 mn) in 1H17.
Click here for 1H17 CMB financials.
Pursuant to our material event disclosure dated 10.04.2017, Toshiba Visual Solutions Corporation has not yet finalized the bid evaluation process for the sale of its TV business unit. Further developments will be shared with the public.