EBRD invests €125 million in the acquisition of an equity stake of 15.44 % in Paşabahçe Cam. This deal is the largest equity investment of EBRD in Turkey.
European Bank for Reconstruction and Development (EBRD) becomes a shareholder in Paşabahçe Cam Sanayii ve Ticaret A.Ş., the glassware subsidiary of Şişecam Group. The details of the transaction have been announced during a press conference in Istanbul. EBRD is said to invest €125 million in the acquisition of an equity stake of 15.44 % in Paşabahçe.
In his speech during the press conference, Prof. Dr. Ahmet Kırman, Vice Chairman and CEO of Şişecam Group said “With its 79 years of experience, 20,000 employees, exports to 150 countries and sales over $3.1 billion, Şişecam is a corporation of international scale. As a producer located in 13 countries, Şişecam produces 40 % of its glass abroad. Şişecam is Europe’s second, world’s third largest producer of glassware; Europe’s third, world’s sixth largest producer of flat glass, and Europe’s fourth, world’s fifth largest producer of glass packaging in terms of production capacity.”
“This investment shows global confidence in Turkey and Şişecam”
Having stated that Şişecam Group continues its endeavor towards its 2020 vision of becoming one of the three largest producers in the world, Prof. Dr. Ahmet Kırman said “Today we take pride of signing an important agreement with a leading global financial player EBRD; a partner with whom we have common values for the sustainable development. As you already know EBRD launched its operations in Turkey in 2009. The EBRD’s cooperation with Şişecam dates back to 1997, even before the Bank started investing in Turkey. The EBRD has financed Şişecam’s operations in Russia, Ukraine, Bulgaria and now Turkey, having boosted the company with investment of over €240 million over the years.
Our distinguished organizations have strengthened their relationship and cooperation even more to pave the way to a stronger and mutually beneficial partnership.”
“This partnership constitutes one of the important steps in paving the way to the global leadership for Paşabahçe.”
Kırman stated that this transaction sets the company value of Paşabahçe, which is the third biggest global glassware producer in terms of both production capacity and global market share (12 %), up to €810 millio ($1.1 million) and said “Our collaboration with EBRD will support our efforts in reaching our global targets. This partnership constitutes one of the important steps in paving the way to the global leadership for Paşabahçe.”
“The EBRD will work towards further improving corporate practices at Paşabahçe and will help make a strong company even stronger.”
Present at the press conference in Istanbul, EBRD Director for Turkey Michael Davey said: “This deal is a proof of EBRD’s appetite to do more equity investments in Turkey and help companies to grow.”
Speaking ahead of the official signing ceremony in London, EBRD President Sir Suma Chakrabarti said: “We are very happy to join forces with Şişecam by becoming a shareholder in Paşabahçe, a well-known and widely respected Turkish company and brand. The EBRD will work towards further improving corporate practices at Paşabahçe and will help make a strong company even stronger.”
One of the most established enterprises in Turkey, Şişecam Group is a global actor in business fields including all main areas of glass, i.e. flat glass, glassware, glass packaging and fiberglass, as well as soda and chrome compounds. Şişecam, 2nd largest glassware, 3rd largest flat glass and 4th largest glass packaging manufacturer in Europe in terms of production capacity, has manufacturing activities in Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia-Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt and India. An international Group with an experience of 79 years, more than 20.000 employees, manufacturing activities in 13 countries and sales in 150 countries, Şişecam aims at becoming one of the three largest global manufacturers in line with its vision for 2020. www.sisecam.com