Arçelik will pay $75 million for a majority stake of the company currently owned by Netherlands-based Retail Holdings
Turkey's leading appliance maker Arçelik is to buy 57% stake in the Singer Bangladesh Limited, a leading home appliance manufacturer and retailer in Bangladesh.
Arçelik will pay $75 million for a majority stake of the company currently owned by Netherlands-based Retail Holdings.
Singer Bangladesh posted an official disclosure at the Dhaka Stock Exchange (DSE) yesterday. According to the disclosure, Arçelik and Retail Holdings NV on Friday announced they signed an agreement under which Ardutch BV—a wholly owned subsidiary of Arçelik—would acquire Retail Holdings BV, which owns 57% of Singer Bangladesh shares.
Retail Holdings Chairman, President and CEO, Stephen H Goodman, said: “Singer Bangladesh's business will benefit significantly from the sale as Arçelik is a much larger and financially stronger company with a commitment to, and a world-wide reputation in the home appliance sector.
“Following the sale, Singer Bangladesh will continue to have a royalty-bearing licence from SVP Worldwide—owner of the Singer trademark—to use 'Singer' in the company name and the 'Singer' brand on its stores, products, and services," Goodman added.
With an extensive product portfolio consisting of refrigerators, washing machines, televisions, and air conditioners, Singer Bangladesh has the largest retail distribution network in the Bangladeshi appliance market.
Singer Bangladesh has 1,507 employees and reported revenues of $164 million in 2018, and their net profits after taxes were approximately $11 million.
The company's shares closed 1.93% higher at Tk268.90 on Thursday, on the Dhaka Stock Exchange.
According to DSE data, Singer Bangladesh, which was listed on the Dhaka bourse in 1983, has recommended 30% stock dividends for the year ended on December 31, 2018.
In 2017, the company disbursed 100% cash dividends.
Singer Bangladesh’s paid-up capital is Tk76.69 crore, authorized capital is Tk100 crore, and the total number of its securities is 76,694,491.
The sponsor-directors own 57% stake in the company, while institutional investors own 15.45%, foreign investors 7.30%, and the general public owns 20.25%.
Furthermore, Singer Bangladesh is the largest retailer of consumer durables, with 385 stores and 720 wholesale dealers in the country.
Currently in competition with local player Walton for market leadership, Singer Bangladesh aims to get a boost from Arçelik's production technology and know-how.
Founded in 1955, Arçelik has operations in the durable consumer goods industry with production, marketing, and after-sales services. Arçelik offers products and services in 146 countries with 30,000 employees, 21 different production facilities in eight countries—Turkey, Romania, Russia, China, South Africa, Thailand, Pakistan, and India.
Additionally, it has 34 sales and marketing companies all over the world, and 12 brands—Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Dawlance, Voltas Beko, and Altus.