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Ulker Biskuvi to Use Cash to Buy Sister Ulker Cikolata

Aug. 26 (Bloomberg) -- Ulker Biskuvi Sanayi AS, Turkey’s biggest biscuit and cake maker, will buy 91.7 percent of chocolate maker Ulker Cikolata Sanayi AS from Yildiz Holding AS, the parent of both companies, and from Dynamic Growth Fund for 825 million liras ($470 million).

Ulker Biskuvi will pay the amount from its net cash position of around 1 billion liras and complete the purchase by September, Cem Karakas, Yildiz Holding chief financial officer, said in a news conference in Istanbul today. Ulker Biskuvi will have a net cash of about 200 million liras after the purchase, he said.

Ulker Biskuvi, which has nearly two dozen separate biscuit and chocolate makers and marketing companies, will merge with most of them to have only two units, a chocolate and a wafer maker, by the beginning of 2012 “to have a simpler and efficient organization,” Karakas said. The mergers will create a company expected to have sales of 2.5 billion liras this year, he said.

Ulker Biskuvi, which holds a 25 percent stake in luxury chocolate maker Godiva, will sell a 6 percent stake to its parent Yildiz for 60 million liras to 80 million liras. It will later sell the remaining 19 percent to either Yildiz or its units, Karakas said.

Ulker Biskuvi gained 6 kurus, or 1.2 percent, to 5.30 liras at 3:31 p.m. on the Istanbul Stock Exchange.

Pasta Maker

Yildiz Holding is in talks with Japan’s Nissin Foods Holdings Co. Ltd. to set up an equally owned company to make pasta under its Piyale brand, Karakas said. “We may have a clear picture on this within a month.”

Yildiz expects to increase sales 10 to 12 percent this year from last year’s 10.5 billion liras, with about 25 percent of the sales coming from the Ulker group, Karakas said.

Yildiz also plans to hold an initial public offering of about 40 percent stake in its packaging unit Polinas, Karakas said. Polinas had sales of 450 million liras in 2010, he said.

Yildiz Holding has “a significant stake” in Turkish Retail Investment BV, which bought 50 percent of discount market chain Sok Marketler Ticaret AS from Migros Ticaret AS, Karakas said.

Yildiz’s private equity unit Gozde Girisim Sermayesi Yatirim Ortakligi AS bought 39 percent of Sok and wholesale food supplier unit Bizim Toptan Satis Magazalari AS got a 10 percent stake, Migros and Bizim told the bourse yesterday. Migros agreed in June to sell Sok to Yildiz for 600 million liras.

To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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