Wednesday, April 24, 2019 | ePaper

Turkish Arcelik group buys Singer Bangladesh's controlling stake for $75m

  • Print
Economic Reporter :
Turkey based home appliance manufacturing group Arcelik to acquire controlling stake of 57 per cent of Singer Bangladesh from Netherlands based Retail Holdings group for $75 million or around Tk 144 a share.
Arcelik and Retail Holdings NV on Friday announced that they had signed an agreement under which Ardutch BV, a wholly owned subsidiary of Arcelik, would acquire Retail Holdings BV, which controlled 57 per cent of Singer Bangladesh shares, in a deal worth of $75 million, said a press release issued from Istanbul.
According to a Singer Bangladesh notice published on Friday, Ardutch will acquire 56.9 per cent or 4,37,07,183 shares of Singer from Retail Holdings.
As a listed company, Singer's rest of the 43 per cent shares are traded on the Dhaka and Chittagong stock exchanges with general investors holding 20.25 per cent shares, institutional investors 15.45 per cent and foreign investors 7.30 per cent shares.
Based on the number of shares that Ardutch will acquire, it is estimated that the price of each share will be Tk 144 if exchange rate of US dollar is considered at Tk 84.
The transaction will close in April.
There was speculation in the capital market that Arcelik group, the maker of home appliance brand Beko, would buy the majority stake of Singer Bangladesh.
As a result, share prices of Singer shot up from Tk 180 in July, 2018 to around Tk 270 this month.
A high official of Singer Bangladesh told New Age on Saturday that even after the purchase of Singer Bangladesh share by Ardutch, the operations of Singer Bangladesh would continue under the brand name of Singer. 'It is [share sale] a board level decision. The operations of Singer Bangladesh will continue with the Singer brand name,' he said.
Arcelik in its statement says that the purchase of majority stake of Singer Bangladesh, one of the leading home appliance retailers and manufacturers in Bangladesh, would help to expand its foothold further in Asia-Pacific.
Founded in 1905 and headquartered in Dhaka, Singer Bangladesh has an extensive product portfolio, ranging from refrigerators to washing machines, televisions to air conditioners, it said.
It has top two positions in major product groups as well as the largest retail distribution network in Bangladesh appliance market.
Singer Bangladesh has 1,507 employees and it reported 2018 revenues of $164 million.
'Arcelik has been intensively growing in Asia-Pacific in the last decade with greenfield investments in China, Thailand, Pakistan, and India in a bid to establish a trade corridor along the historical Silk Road,' said the release.
Fatih Kemal Ebiclioglu, president of Turkish industrial conglomerate Koc Holding Consumer Durables Group that owns Arcelik, said, 'This acquisition is another significant step on our Silk Road strategy. Bangladesh is one of the fastest-growing economies in the world, and it will further accelerate in the medium to long term. The market offers huge potential with its expanding middle class and young population. We will combine our global expertise, scale and knowledge with the strong market position of Singer Bangladesh equipped with its strong brand image, for further product developments to grasp the local market needs.'

More News For this Category

Abdullah Al-Mahmud (Mahin), Chairman of Crystal Insurance Company Limited, presiding over its 83rd meeting at its head office in the city on Sunday. AHM Mozammel Hoque, Md. Tajul Islam,  Farhana Danesh, Shahzadi Begum, Soera Zahir, Nusrat Mahmud, Directors and Mia Fazle Karim, CEO of the company were also present.

Abdullah Al-Mahmud (Mahin), Chairman of Crystal Insurance Company Limited, presiding over its 83rd meeting at its head office in the city on Sunday. AHM Mozammel Hoque, Md. Tajul Islam, Farhana Danesh, Shahzadi Begum, Soera Zahir, Nusrat Mahmud, Directors and Mia Fazle Karim, CEO of the company were also present.

ICMAB opposes recruiting foreigners in accounting functions

Economic Reporter :A delegation of ICMAB, led by President M Abul Kalam Mazumdar, Tuesday called on Bangladesh Investment Development Authority (BIDA) Executive Chairman Kazi M Aminul Islam at his office

Amir Uddin, Audit Committee Chairman of Al-Arafah Islami Bank Limited, presiding over its 185th meeting at the Banks head office in the city on Tuesday. Md. Abdus Salam, Abdul Malek Molla, Niaz Ahmed, Khalid Rahim, members and Farman R Chowdhury, CEO of the Bank were also present.

Amir Uddin, Audit Committee Chairman of Al-Arafah Islami Bank Limited, presiding over its 185th meeting at the Banks head office in the city on Tuesday. Md. Abdus Salam, Abdul Malek Molla, Niaz Ahmed, Khalid Rahim, members and Farman R Chowdhury, CEO of the Bank were also present.

S.M. Abu Mohsin, EC Chairman of NCC Bank Limited, presiding over its meeting at its head office in the city recently. Md. Nurun Newaz Salim, Chairman and Mosleh Uddin Ahmed, Managing Director of the bank among others were also present.

S.M. Abu Mohsin, EC Chairman of NCC Bank Limited, presiding over its meeting at its head office in the city recently. Md. Nurun Newaz Salim, Chairman and Mosleh Uddin Ahmed, Managing Director of the bank among others were also present.

BB issues relaxed loan classification, provisioning policy

Staff Reporter :Bangladesh Bank (BB) has introduced a set of newly modified guidelines for loan classification and provisioning for the scheduled commercial banks, in an apparent move to bring down

Stock market is not in bad condition: Kamal

Economic Reporter :Finance Minister AHM Mustafa Kamal Tuesday said that the country's capital market is not in a bad condition."Capital market is related to the economy of the country. If

Provide subsidy flourishing dairy industry: Speakers

Economic Reporter :Speakers at a roundtable discussion on Tuesday said the dairy sector of Bangladesh has potentials. Production cost milk has to be reduced, create habit of milk consumption among

First sale of F11 Pro commences in BD

Business Desk :The epitome of "Brilliant Portrait", OPPO F11 Pro is available for customers in Bangladesh to grab. After the official launch of the handset on April 16, 2019, the

BSMRMU awards Dr Hasina Khan

BSMRMU awards Dr Hasina Khan

Business Desk :The sole maritime specialized public university of the country, Bangabandhu Sheikh Mujibur Rahman Maritime University, Bangladesh organized a reception program for Swadhinata Padak-2019 awardee Dr. Hasina Khan, Professor

Walton starts TV export to Germany

Business Desk :The Bangladeshi multinational electronics brand 'Walton' has started the export of its produced 'Made in Bangladesh' labelled LED television to Germany, a nation of the largest economy in