Moody's downgraded the ratings of Vestel Elektronik to "B3" from "B2". The outlook remains negative.
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Fitch Ratings downgraded Vestel Elektronik's long-term foreign and local currency Issuer Default Ratings ("IDR") to B from BB- (BB minus). The Outlook on both IDRs is Stable. Fith also downgraded the senior unsecured rating of Vestel Elektronics Finance Ltd.'s guaranteed issue of US$225mn 8.75% 2012 maturity notes to B/RR4 from BB- (BB minus).
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Vestel reported total revenues of US$1,792mn and net loss of US$66.5mn in 1H08.
Click here for 1H08 CMB financials.
Vestel Dis Ticaret A.Ş., a subsidiary of Vestel Elektronik acquired "Vestfrost" brand which has a strong positioning and recognition in Northern European Market and Russia. The Company plans to expand "Vestfrost" brand to overall European Market and to all its product range (refrigerators, washing machines, dishwashers, ACs and ovens) as "Vestfrost" has been solely refrigerator and freezer brand.
Vestfrost was established in 1963 in Denmark. The Company entered into strategic partnership with Vestel in household appliances (white goods) in 2006. With the sale of "Vestfrost" brand to Vestel on the household appliance side, the Company continues its operations solely in the commercial freezer area.
The acquirer of Vestfrost brand, Vestel Foreign Trade, handles exports for Vestel Group companies. In line with further strengthening of Vestel Foreign Trade's position in the export markets through "Vestfrost" brand, Vestel Elektronik's revenue generation and profitability should be indirectly affected positively.
Vestel reported total revenues of US$888mn and net loss of US$99.8mn in 1Q08. The loss mainly stems from high FX losses caused by the sharp depreciation of YTL in 1Q08.
Click here for 1Q08 CMB based consolidated financials.
We have made a public announcement on 24 October 2007 that a non-binding letter of intent had been signed between Vestel Elektronik Sanayi ve Ticaret A.Ş., the majority shareholder of Vestel White Goods, and Whirlpool Europe srl for commencing exclusive negotiations to establish a joint venture company in equal proportion (50%-50%) and to transfer the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.Ş. in Vestel White Goods to the joint venture company to be established for the purpose of strengthening commercial activities in foreign and domestic white goods markets and developing cooperation in this respect.
The talks between Vestel Elektronik and Whirlpool Europe still continue. Meanwhile, Vestel Elektronik and Whirlpool further signed a confidentiality agreement on 11 June 2008 to start the due diligence process with regards to the transfer of the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.Ş. in Vestel CIS (100% owned by Vestel Elektronik) to the joint venture company to be established between the parties in equal proportion (50%-50%).
Vestel CIS is a wholly-owned Russian subsidiary of Vestel Elektronik. The Company manufactures refrigerators and washing machines for the Russian and CIS markets in facilities with 85,000m2 of enclosed space. The refrigerator and washing machine plants, which went into production in 2006, have annual production capacities of 500,000 units each.
We have made a public announcement on 24 October 2007 that a non-binding letter of intent had been signed between Vestel Elektronik Sanayi ve Ticaret A.Ş., the majority shareholder of Vestel White Goods, and Whirlpool Europe srl for commencing exclusive negotiations to establish a joint venture company in equal proportion (50%-50%) and to transfer the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.Ş. in Vestel White Goods to the joint venture company to be established for the purpose of strengthening commercial activities in foreign and domestic white goods markets and developing cooperation in this respect.
Although profits had been determined in the financial statements being prepared according to the "Communiqué on Accounting Standards of the Capital Market Serial XI and No:25 of the Securities Exchange Act", losses from the previous years had appeared in the financial statements in which inflation adjustments had been made as of the date of 31.12.2003 in accordance with the Communiqué Serial XI and No: 21, and no profit remained as a result of deduction of 2006 earnings from these losses. Accordingly, The Board of Directors of Vestel Elektronik decided to propose no dividend payment (from 2007 earnings) to the General Assembly at its Board meeting dated 2 May 2008.
Vestel reported total revenues of US$3,558mn and net income of US$14mn in FY07.
Click here for FY07 CMB based consolidated financials.
ISS, the world's leading provider of corporate governance and proxy voting solutions, assigned a corporate governance rating score of 8.5 (82.57%) to Vestel, up from last year's 7.5 (75.91%) level. ISS Corporate Services stated in its report that the rating reflected the very good overall performance of the company regarding its current corporate governance structures as measured against the Principles of the Turkish Capital Markets Board (CMB). Vestel scored particularly well in its Stakeholders standards, slightly lower on its Board of Directors practices.
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A non-binding letter of intent has been signed on 23.10.2007 between Vestel Elektronik Sanayi ve Ticaret A.Ş., the majority shareholder of Vestel White Goods, and Whirlpool Europe srl for commencing exclusive negotiations to establish a joint venture company in equal proportion (50%-50%) and to transfer the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.S. in Vestel White Goods to the joint venture company to be established for the purpose of strengthening commercial activities in foreign and domestic white goods markets and developing cooperation in this respect.
If the deal goes through, Vestel Elektronik and Whirlpool SRL will together establish a joint-venture company in equal proportion (50%-50%). Accordingly, both parties will inject capital (in cash), proportional to their respective stakes to this newly established company. This new company will then purchase Vestel Elektronik�s 72.6% stake in Vestel White Goods by paying cash.
If as a result of negotiations agreement should be reached for such cooperation, the parties will inform the public of the further developments in accordance with the applicable legislation.
26.10.2007
While no final decision has been taken jointly with Whirlpool yet, the issue concerning the acquisition of the minority shares through tender offer when necessary is incorporated in the non-binding letter of intent signed on 23 October 2007.