Pursuant to our material event disclosure dated 05.08.2015, Competition Authority has announced its decision on the probe, which was initiated within the scope of the Act No.4054 on the Protection of Competition, against some companies operating in the consumer electronics market including our 100% owned subsidiary, Vestel Ticaret AŞ. Accordingly, Competition Authority has decided to impose administrative fine amounting to TL 8,024,370.30 on Vestel Ticaret AŞ, which is open to judicial review. Vestel Ticaret AŞ will take legal action against the decision within the legal time period. Further developments will be shared with the public.
Our Company was assessed and entitled to be included in the BIST Sustainability Index once again, which comprises publicly traded companies with a high rating on corporate sustainability performance, for the November 2016-October 2017 period. The Index calculation will start as of November 1, 2016.
Vestel Elektronik announced consolidated sales revenues of TL 6,765 mn (US$ 2,308 mn) and net profit of TL 266 mn (US$ 90.9 mn) in 9M16.
Click here for 9M16 CMB financials.
The news that appeared in various media sources today claiming that our Company will sign a sponsorship agreement with Trabzonspor for the Akyazı Stadium does not reflect the truth.
Standard & Poor’s affirmed Vestel Elektronik's the corporate credit rating at "B-", the outlook on the rating is stable.
Click here for the press release.
Within the scope of the brand licensing agreement signed with Toshiba, which was announced to the public on 01.09.2016, a new organization will be set up in Europe and Toshiba’s old production facility in Poland, Wroclaw is planned to be utilized as a manufacturing and logistics center for both Toshiba and Vestel. Within this context, our 100% owned subsidiary, Vestel Ticaret AŞ signed a preliminary share purchase agreement with Compalead Electronics B.V. on September 1, 2016 for the acquisition of the shares of “Compal Electronics Europe sp. z o.o.”, which owns the afore-mentioned production facility in Poland. The completion of the share transfer is subject to the attainment of the necessary approvals from the related authorities and the fulfillment of the certain conditions set by parties.
Since a final agreement was not certain at the stage of the signing of the memorandum of understanding, within the scope of the Capital Markets Board’s Communiqué on Material Events Disclosure, our Board of Directors resolved to postpone the public announcement until the signing of a binding agreement in order not to mislead investors and weaken our Company’s negotiating power during the process.
The news that appeared in various media sources today (based on the news published in the Japanese Nikkei Newspaper dated September 1, 2016) claiming that Sharp Corporation (Sharp Corp.) is in talks with our Company to buy back its brand licensing rights which it has awarded to our 100% owned subsidiary, Vestel Ticaret AŞ for the manufacture, sales and marketing of white goods under the SHARP brand in Europe does not reflect the truth. Our Company did not receive any such request from Sharp Corp. and the afore-mentioned brand licensing agreement is valid until 2020. Sharp Corp. informed our Company that it has sent a refutation text to Nikkei newspaper regarding the mentioned speculative news.
In line with our Company’s goal to strengthen its position further in the international markets and enhance collaboration with global trademarks, our 100% owned subsidiary, “Vestel Ticaret AŞ” signed a brand licensing agreement with “Toshiba Visual Solutions Corporation” on September 1, 2016 for the manufacture, sales, marketing and distribution of televisions under the license of Toshiba brand in the European market. The afore-mentioned agreement will become effective after the necessary legal permissions are obtained in the countries under scope and will be initially valid for five years. The brand licensing agreement aims to increase the market share of Toshiba branded televisions in Europe above 5% in the medium term and enhance our Company’s competitiveness and branded sales in the European TV market.
Since a final agreement was not certain at the stage of the signing of the memorandum of understanding, within the scope of the Capital Markets Board’s Communiqué on Material Events Disclosure, our Board of Directors resolved to postpone the public announcement until the signing of a binding agreement in order not to mislead investors and weaken our Company’s negotiating power during the process.
Since the Corporate Governance Principles Compliance Rating Agreement signed between our Company and SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri AŞ (SAHA) on August 27, 2015 will expire as of August 27, 2016, a renewal agreement has been signed with SAHA on August 25, 2016, which will be valid until August 25, 2017.
Vestel Elektronik announced consolidated sales revenues of TL 4,648 mn (US$ 1,593 mn) and net profit of TL 176 mn (US$ 60.5 mn) in 1H16.
Click here for 1H16 CMB financials.