Teknosa Talks With Acquisition Targets as It Works With Euronics
Teknosa Ic & Dis Ticaret AS (TKNSA), Turkey’s biggest electronic goods retailer, is in talks with potential acquisition targets in the country and signed a cooperation agreement today with Dutch retailer Euronics International to benefit from cheaper product procurement.
Teknosa, which runs 280 stores in its home country, is looking at acquisition targets through its adviser HSBC Holding Plc’s local investment banking and brokerage unit as consolidation is “inevitable in the Turkish market,” Chief Executive Officer Mehmet Nane said in an interview today.
The Turkish company is now a partner in the “cooperative- like structure” of Euronics with powers to vote on that company’s board decisions, Nane said. Euronics operates 11,000 outlets in 31 countries. Istanbul-based Teknosa will be able to buy products from producers at cheaper rates through Euronics’ wider purchasing system, Nane said.
Teknosa, which went public in May after owner Haci Omer Sabanci Holding AS (SAHOL) sold a 11.5 percent stake, will lower the prices of its products after the Euronics accord, Nane said. Teknosa maintains its guidance of more than 20 percent sales growth to more than 2 billion liras ($1.1 billion) this year, he said. Teknosa aims for sales in a range of 2.05 billion liras to 2.15 billion liras, Nane said Aug. 1.
Teknosa fell 1.1 percent to 7.5 liras in Istanbul trading, the lowest level since Aug. 16.
Euronics will increase sales to 17 billion euros ($21.9 billion) this year from 16.2 billion euros in 2011 after the Teknosa agreement, Chairman Hans Carpels said at a news conference in Istanbul today, adding that the company aims for 20 billion euros of sales in 2015.
To contact the reporter on this story: Ercan Ersoy in Istanbul at firstname.lastname@example.org
To contact the editor responsible for this story: Benedikt Kammel at email@example.com