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.
Click here for the report.
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.
Vestel Elektronik announced total revenues of US$1,538mn (€1,158mn) and net loss of US$28.7mn (€21.6mn) in 1H07.
Click here for 1H07 IFRS financials.
Fitch Ratings revised Vestel Elektronik's outlook for its long-term foreign and local currency Issuer Default Ratings (IDR) to negative from stable. Its long-term foreign and local currency IDRs are affirmed at BB-(BB minus). Fitch also affirmed the senior unsecured rating of Vestel Electronics Finance Ltd.'s issue of US$225mn 8.75% notes at BB-(BB minus).
Click here for the press release.
Click here for quarter ended March 31, 2007.
Moody's downgraded Vestel Elektronik's corporate family rating ("CFR") and the Company's US$225mn guaranteed notes to B1 from Ba3.
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 2006 earnings) to the General Assembly at its Board meeting dated 10 May 2007.