VW woes stall 600 mln euro sale of Turkish parts supplier -sources

Is Yatirim Menkul Degerler AS

23/10/2015 17:42

By Asli Kandemir 
    ISTANBUL, Oct 23 (Reuters) - Volkswagen's  VOWG_p.DE  diesel 
emissions scandal has stalled the 600 million euro ($666 mln) 
sale of Turkish parts supplier Teklas Kaucuk, three sources with 
knowledge of the process told Reuters. 
    Two foreign bidders - U.S.-based Cooper-Standard Automotive 
and a consortium of investment firms Oaktree Capital Group 
 OAK.N  and Turkey's Esas Holding - have pulled out to assess 
the impact of the scandal on Teklas' sales, the sources said. 
    "Teklas is a great firm with annual EBITDA of 75 million 
euros. Including the cash in its coffers, the sale value was 
estimated at over 600 million euros," one of the sources said, 
adding the bidders now wanted a lower price due to the scandal. 
    "Investors have gone into 'wait and see' mode. The process 
has stalled for now as the bidders wanted to reflect VW's 
problems in the pricing," the source said. 
    Neither Cooper-Standard, a subsidiary of Cooper-Standard 
Holdings  CPS.N , Oaktree, or Esas could immediately be reached 
for comment. 
    Teklas board member Raul Danon confirmed that bids from two 
foreign investors had fallen through, but said Teklas and its 
advisors had rejected them because they were too low and said he 
was not aware of any impact from the VW scandal. 
    "Our company is constantly in focus from foreign investors. 
Recently two foreign investors submitted bids which we directed 
to our advisor. Both were rejected since they were not 
interesting," he told Reuters. 
    Investment bank Is Yatirim Menkul Degerler  ISMEN.IS  is 
advising Teklas. 
    VW admitted on Sept. 18 that it used illegal software to 
manipulate emissions tests on diesel vehicles in the United 
States.  
    About 30 percent of Teklas' annual 255 million euro sales 
are to VW, the sources said. The privately-owned company also 
produces parts for General Motors  GM.N , Daimler  DAIGn.DE , 
BMW  BMWG.DE  and Toyota  7203.T , among others. 
    ($1 = 0.9006 euros) 
 
 (Editing by Nick Tattersall; Editing by David Holmes) 
 ((asli.kandemir@thomsonreuters.com; +90-212-350 7065; Reuters 
Messaging: asli.kandemir.thomsonreuters.com@reuters.net)) 
 
Keywords: VOLKSWAGEN EMISSIONS/TURKEY SUPPLIER