Page 110 - TURKRptJun19

from the McDonald’s chain in Turkey generated TRY768mn in revenues last year. Founded in 1950, Anadolu Group operates in a wide range of sectors, including beer (Efes), soft drinks (Coca-Cola), retail (Migros), agriculture, automotive (Anadolu Isuzu), stationery, quick service restaurants, real estate and energy. The holding company’s consolidated revenues amounted to TRY42bn last year.
Teklas Kaucuk, a supplier of components to carmakers such as General Motors and BMW, has been put up for sale in a deal that could value the company at as much as €700mn ($783mn), people familiar with the matter told Reuters. Investment bank JP Morgan is advising the family behind the company on the sale. Founded in 1970, Teklas, located in the northwestern industrial city of Kocaeli near Istanbul, makes rubber hoses and metal tubes mainly for use in air conditioning, brakes and electric vehicles and also supplies parts to Daimler, FCA, Toyota and Volkswagen. It employs some 5,000 people at sites in Europe, Mexico and China. There was an attempt to sell Teklas in 2015 but the plan stalled after the diesel emissions scandal at Volkswagen prompted investors to assess impacts on Teklas’s sales. The auction for Teklas is expected to kick off soon with potential suitors such as Cooper Standard and Bain Capital being targeted, the sources reportedly said. It is expected Teklas will be valued at around seven to eight times its annual earnings before interest, tax, depreciation and amortisation (Ebitda) of around €80-90mn, suggesting it could fetch between €600-700mn, the sources said. It is not clear if the owners’ decision to sell the company is related to problems in the Turkish auto market. It has suffered from a deep contraction since last year amid Turkey’s recession. Vehicles sales (passenger cars and light commercial vehicles combined) in Turkey plunged 48% y/y to 123,000 in the first four months of this year. The contraction in the passenger car market was 47% y/y to 93,000 units sold. Even though the weaker Turkish lira—the currency has lost around 13% of its value against the US dollar this year, following on from the 28% shed last year—makes locally-produced cars more affordable for consumers in Turkish carmakers’ main export markets, local companies’ export revenues declined 7% y/y to $10.5bn in January-April. The problem is the poor economic condition and weak growth of the main export market, Europe.
EBRD lends €25mn to Turkish metal and plastic packaging firm Sarten Ambalaj. The European Bank for Reconstruction and Development (EBRD) is to provide a €20mn loan to Sarten Ambalaj, a leading regional packaging producer based in Turkey. The financing package included a €2mn parallel loan from the Clean Technology Fund under the EBRD’s Near Zero Waste programme. The company aims to save 1,200 tonnes of raw steel per year by using thinner steel plates. Energy efficiency improvements will also help save an equivalent of 3,000 tonnes of CO2 per year. Sarten Ambalaj offers metal containers for various industries, including canned foods, cooking oil, aerosols, engine oils and paints. It also produces plastic packaging for paints, ketchup, cleaning materials and cosmetics industries. In 2015, the Japanese investment and trading conglomerate Mitsui & Co., Ltd. acquired 15% oif the firm. The EBRD has invested over €11bn in 283 projects in Turkey since 2009. The overwhelming majority of EBRD investments in Turkey are in the private sector.
110 TURKEY Country Report June 2019 www.intellinews.com