Mr. İhsaner Alkım, Mr. Ahmet Süha Erol and Mr. Nedim Sezer, who are members of the Executive Committee of Vestel Group of Companies, which consisted of 6 members, have left their posts due to retirement as of January 1, 2018.
Within the scope of the re-organization studies aimed at reducing the number of layers in management hierarchy, new appointments will not be made for the afore-mentioned vacancies. Accordingly, going forward Executive Committee Meetings will be held with the participation of the current Executive Committee Members, General Manager of Vestel Elektronik Sanayi ve Ticaret AŞ and general managers of the Company’s related subsidiaries.
Pursuant to our material event disclosure dated 27.10.2017; within the scope of its strategy to enter into developing markets with high growth potential, Vestel Elektronik’s 94.62% owned subsidiary Vestel Beyaz Eşya Sanayi ve Ticaret AŞ submitted a binding offer to acquire all of the shares of “Dongbu Daewoo Electronics”, the South Korean white goods manufacturer, on December 22, 2017 (today). In the following process, negotiations will be held between the sellers and potential buyers. We will update the public with further developments.
Pursuant to our material event disclosure dated 10.04.2017, Toshiba Corporation finalized the bid evaluation process for the sale of its TV division, Toshiba Visual Solutions Corporation and agreed to sell its TV unit to another bidder.
Vestel Elektronik’s wholly-owned subsidiary, Vestel Ticaret AŞ signed a brand licensing agreement with Toshiba Visual Solutions Corporation on September 1, 2016. The agreement will not be affected by the afore-mentioned sale.
Zorlu Holding AŞ, the controlling shareholder of Vestel Elektronik Sanayi ve Ticaret AŞ, signed the Joint Initiative Group Cooperation Protocol ("Protocol") on November 2, 2017 with the intention to participate as a potential investor in "Turkey's National Automobile Project" ("Project") which will be carried out under the coordination of the Ministry of Science, Industry and Technology and the Union of Chambers and Commodity Exchanges of Turkey.
Under this Protocol, the signing parties will determine the framework for the actions to be taken with respect to the Project for the design, development, manufacture, and creation of a sales and distribution system for a national car and establishment of a local company, which will hold the intellectual and industrial property rights to this car. The project will contribute towards the Republic of Turkey's goal to become one of the top 10 economies in the world.
The capital, ownership and management structure of the company to be established will be determined in the coming period subject to the outcome of the technological and financial studies which will be conducted post the signing of the Protocol and necessary public annoucements will be made accordingly.
Vestel Elektronik announced consolidated sales revenues of TL 8,234 mn (US$ 2,290 mn) and net profit of TL 75 mn (US$ 21 mn) in 9M17.
Click here for 9M17 CMB financials.
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.