Company enters bourse with merger
Güncelleme Tarihi:
by Pinar Sungur
Oluşturulma Tarihi: Haziran 08, 2009 00:00
ISTANBUL - A 2006 effort by Tek-Art İnşaat, a construction company, to open to public backfired, but the company will now merge with another firm of Mehmet Ali Yılmaz, Tek-Art’s owner. Tek-Art sells all its Tek-Art Turizm shares prior to the merger decision
Tek-Art İnşaat, a Turkish construction firm whose public offering initiative in September 2006 ended in failure due to a lack of investor demand as well as stock market hesitations concerning the firm’s income flow, will now merge with another public company of its owner, Mehmet Ali Yılmaz.
The company, which could not enter the National Market at the Istanbul Stock Exchange, or IMKB, found its financial structure insufficient for robust operations and will be under the roof of Tek-Art Turizm. This way, Tek-Art İnşaat as a corporate body will be eliminated. The merger of the two companies under the umbrella of Tek-Art Turizm will be realized through balance sheets dated June 30.
Toptem Toplu Konut Prefabrik, which has a subsidiary status, will also be included under the roof of Tek-Art Turizm under the same conditions, according to a filing with the IMKB last week. Mehmet Ali Yılmaz owns 35.6 percent of Toptem while 35.2 percent of its shares belong to Tek-Art İnşaat and 17 percent to Tek-Art Turizm. In Tek-Art İnşaat, Toptem has a 35 percent share while individuals Türkay Yılmaz, Soner Yılmaz and Zeynep Yılmaz own 15 percent each.
Prior to the merger decision, Tek-Art İnşaat had sold all its Tek-Art Turizm shares. With the sales on May 7 and May 8, Tek-Art İnşaat sold out its all 16.4 percent share in Tek-Art Turizm. On May 7, Tek-Art İnşaat had reduced its share to 10.42 percent by selling over 4,331,851 shares at a price range of 0.88 to 0.95 Turkish Liras. On May 8, it sold the remaining 7,270,533 shares at a price range of 0.74 to 0.83 liras. Following the share sale, Tek-Art Turizm’s free float, which was 42.04 percent at the end of 2008, rose to 58.6 percent. Türkay Yılmaz owns 18.95 percent of Tek-Art Turizm while Fatma Yılmaz Tozlu owns 18.16 percent.
Tek-Art İnşaat had 33.68 percent share in Tek-Art Turizm in 2000. When the public offering process for Tek-Art İnşaat was initiated in September 2006, IMKB management allowed it to be traded on just the National Secondary Market on grounds that its financing structure was not at a level to maintain operations robustly. However, the public offering was delayed on grounds that the demand distribution was not at a level to secure price stability at the IMKB.
For the public offering of 25.4 percent of Tek-Art İnşaat, the received demand was at 2 liras per share. The initial public offering, worth 15 million liras was expected to yield nearly 30 million. However, at the public offering, in which GİSAD Securities was the consortium leader, demand from around 300 investors stood at 29 million. Tek-Art Turizm, which has total assets of 42.5 million liras and a capital of 69.7 million liras, increased its sales revenue 38 percent to 14.076 million liras in 2008 and closed the year with a loss worth 1.939 million liras. The company closed the first quarter of this year with a loss of 1.306 million liras. The company’s market value is 78.7 million liras, or $51.5 million.
The company, which could not enter the National Market at the Istanbul Stock Exchange, or IMKB, found its financial structure insufficient for robust operations and will be under the roof of Tek-Art Turizm. This way, Tek-Art İnşaat as a corporate body will be eliminated. The merger of the two companies under the umbrella of Tek-Art Turizm will be realized through balance sheets dated June 30.
Toptem Toplu Konut Prefabrik, which has a subsidiary status, will also be included under the roof of Tek-Art Turizm under the same conditions, according to a filing with the IMKB last week. Mehmet Ali Yılmaz owns 35.6 percent of Toptem while 35.2 percent of its shares belong to Tek-Art İnşaat and 17 percent to Tek-Art Turizm. In Tek-Art İnşaat, Toptem has a 35 percent share while individuals Türkay Yılmaz, Soner Yılmaz and Zeynep Yılmaz own 15 percent each.
Prior to the merger decision, Tek-Art İnşaat had sold all its Tek-Art Turizm shares. With the sales on May 7 and May 8, Tek-Art İnşaat sold out its all 16.4 percent share in Tek-Art Turizm. On May 7, Tek-Art İnşaat had reduced its share to 10.42 percent by selling over 4,331,851 shares at a price range of 0.88 to 0.95 Turkish Liras. On May 8, it sold the remaining 7,270,533 shares at a price range of 0.74 to 0.83 liras. Following the share sale, Tek-Art Turizm’s free float, which was 42.04 percent at the end of 2008, rose to 58.6 percent. Türkay Yılmaz owns 18.95 percent of Tek-Art Turizm while Fatma Yılmaz Tozlu owns 18.16 percent.
Tek-Art İnşaat had 33.68 percent share in Tek-Art Turizm in 2000. When the public offering process for Tek-Art İnşaat was initiated in September 2006, IMKB management allowed it to be traded on just the National Secondary Market on grounds that its financing structure was not at a level to maintain operations robustly. However, the public offering was delayed on grounds that the demand distribution was not at a level to secure price stability at the IMKB.
For the public offering of 25.4 percent of Tek-Art İnşaat, the received demand was at 2 liras per share. The initial public offering, worth 15 million liras was expected to yield nearly 30 million. However, at the public offering, in which GİSAD Securities was the consortium leader, demand from around 300 investors stood at 29 million. Tek-Art Turizm, which has total assets of 42.5 million liras and a capital of 69.7 million liras, increased its sales revenue 38 percent to 14.076 million liras in 2008 and closed the year with a loss worth 1.939 million liras. The company closed the first quarter of this year with a loss of 1.306 million liras. The company’s market value is 78.7 million liras, or $51.5 million.