Turkey’s Arçelik, Grundig announce merger
Posted by meb at February 27th, 2009
Turkish durable goods maker Arçelik and its television-manufacturing unit Grundig Elektronik have decided to merge in order to increase their competitiveness, the companies said on Friday.
Shares in Grundig were 17.2 percent higher at 0.68 lira after the deal was announced, bringing gains over the last two days to 40 percent. Arçelik shares were 4 percent at 1.82 lira. The companies are both part of the Koç Holding conglomerate. Arçelik announced that it was also raising its capital to 649.9 million lira ($382 million) from 400 million lira in a rights issue. It also said it was selling shares in finance company Koc Finansal Hizmetleri to other Koc group companies for 250 million lira. Koc Holding said it was buying 201.6 million lira of these shares. Arçelik said it would earn 72.7 million lira pre-tax from the sale of these shares. “The company decided to take a series of restructuring (measures) to increase its weight in the sector and benefit from the new opportunities in the best way possible,” Arçelik said in a statement. According to previously announced figures, Arçelik already owns around 75 percent of Grundig, formerly Beko Elektronik.
source: Today’s Zaman
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