With regards to the ongoing talks between Vestel Elektronik and Whirpool Europe, due to the global economic downturn and financial crisis, both parties have agreed to pause the talks until the conditions improve. However the parties believe that the strategic reasoning behind the deal are still valid.
Vestel reported total revenues of US$2,490mn and net loss of US$108.4mn in 9-mth08.
Click here for 9-mth08 CMB financials.
The Board of Directors of Vestel Elektronik Sanayi ve Ticaret Anonim Şirketi met under the presidency of Mr. Ahmet Nazif Zorlu on 21 November 2008 and took the below-mentioned decisions.
1. The numbered 5422 former Corporate Tax Act's 8/12 clause states that the gains from participation share sales are required to be added to the capital until 31.12.2008. With reference to this clause, our Company's issued capital is to be raised by YTL 16,356,388.04 to YTL 175,456,275.00 from YTL 159,099,886.96. The YTL 16,356,388.04 amount is to be met through the gains from participation share sales and accordingly, existing shareholders are to exercise their bonus issue rights.
2. In a period of ongoing global crisis, in order to further strengthen our Company's financial structure, and hence to minimize the negative effects of the crisis, to reflect our Group's trust to our Company and to further add value to our shares, following the bonus issue mentioned in the first clause above, within the limits of our authorized capital, our Company's issued capital is to be raised by YTL 160,000,000 through allocation of new shares to Zorlu Holding A.Ş. and the raised YTL 160,000,000.00 capital is to be paid in cash.
With regards to the new shares to be issued, our existent shareholders' pre-emptive rights are to be restricted (in line with Article 6 of AoA) and the new shares (with a nominal value of YKR 1 per share) are to be allocated to Zorlu Holding A.Ş. in the wholesale market at a value of YKR 1 per share with the intermediation of Deniz Yatırım Menkul Kıymetler A.Ş.
3. The application to Capital Markets Board related to the capital increase and other legal procedures are to be initialized.
Moody's downgraded the ratings of Vestel Elektronik to "B3" from "B2". The outlook remains negative.
Click here for the press release.
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).
Click here for the press release.
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.