Turkish EV maker TOGG ownership set for shake-up with stake sales (updated)
UPDATE 2-Turkish EV maker TOGG ownership set for shake-up with stake sales Adds stock moves, analyst note, minister comments and details
By Can Sezer
ISTANBUL, Nov 3 (Reuters) - Vestel Elektronik and Anadolu Group Holding said on Tuesday that they had signed agreements to sell their stakes in Turkish electric vehicle maker TOGG to Turkey's sovereign wealth fund (TVF) and Turkcell in deals worth a total of €368 million ($412 million).
TOGG was founded eight years ago by its current shareholders after President Tayyip Erdogan called for the production of a Turkish passenger car that was fully funded locally.
Reuters reported in August that electronics manufacturer Vestel VESTL.IS and Anadolu AGHOL.IS would each sell their 23% TOGG stakes to TVF and Turkcell, the country's leading mobile phone operator, in which TVF is the largest shareholder.
Vestel said in a statement to Istanbul's stock exchange that it had agreed to sell its TOGG stake to the TVF for €184 million and would use at least 90% of the proceeds to repay bank loans.
Last month Vestel detailed a turnaround plan to eurobond holders as it continues to pursue a debt restructuring.
Meanwhile, Anadolu said separately that it had signed a deal to sell its TOGG holding for the same amount, with the TVF buying 12% and Turkcell 11%.
Vestel shares were up 10% at 0853 GMT, hitting the stock exchange's upper trading limit, while Anadolu stock was up 4% and Turkcell TCELL.IS was down 2%.
Both deals are subject to regulatory approvals and other closing conditions.
'WIN-WIN' DEAL FOR ALL PARTIES
Turkcell TCELL.IS and automaker BMC Otomotiv also hold 23% stakes in TOGG, while the Union of Chambers and Commodity Exchanges of Turkey (TOBB) owns the remaining 8%.
The deal came a few hours after Vestel's parent company, Zorlu Holding, announced the death of its chair, Ahmet Nazif Zorlu, at the age of 82.
Turkish brokerage Ata Yatirim called the deal a "win-win" for all parties, saying it would help Vestel deleverage and let Anadolu focus on its core fast-moving consumer goods business.
Anadolu would move from net debt of $85 million to a net cash position of more than $100 million, the brokerage added.
Turkish Industry Minister Fatih Kacir told a parliamentary budget committee on Monday that TOGG aims to deliver around 60,000 vehicles this year and reach 100,000 with the launch of a new model.
($1 = 0.8924 euros)
(Reporting by Can Sezer; Writing by Mirac Eren Dereli and Daren Butler; Editing by Ronojoy Mazumdar and Alexander Smith)