9< TABOGLU & DEMIRHAN Newsletter 28 April 2014 – 4 May 2014 “ 18 Volume 13, Issue cont’d. CAPITAL MARKET UPDATES    Highlights e. Energy Sector Highlights In accordance with the statement made by Petkim in the Public Disclosure Platform, the net profit of the Company has been realized as TL 37.3 million in the first quarter of 2014, a 12 fold increase. The Company had announced a net profit of TL 49 million for the entire year of 2013. Furthermore, the sales revenue of the Company for the first quarter of 2014 has increased by 20% and reached TL 1.19 million. As per the announcement made by the Chief Executive Officer of Turk Telekom, the net profit of Turk Telekom Group for the first quarter of 2014 has been realized as TL 384 million with a 48% increase when compared to the same period of last year.  According to the dailies, Gunes Sigorta, a subsidiary of Vakifbank, has made a net profit in the amount of TL 10 million 53 thousand in the first quarter of 2014. Additionally, the premiums generated have increased by 40% and reached TL 337 million in the same period. b. Privatization Highlights d. Competition News Sisecam has disclosed in the Public Disclosure Platform that the Company will be the guarantor together with Trakya Cam, a group company, to the Automotive Glass Alliance Rus ZAO, an affiliate of Sisecam based in the Russian Federation, for the loan obtained from ING Bank ZAO. The amount of the loan is Ruble 1.1 billion with a maturity of five years.  a. Capital Market Updates c. Banking Sector News Pursuant to the announcement made by Arcelik in the Public Disclosure Platform, the net profit of the Company in the first quarter of 2014 has increased by 1% and reached TL 131.2 million when compared to the same period of last year. The sales revenue, on the other hand, has increased by 15% and reached TL 2.8 billion. As per the annual report of the Company, TL 1.03 billion of the Company’s turnover has been generated from sales in Turkey, whereas TL 1.77 billion has been generated from international sales. cont’d.  In accordance with the statement released by Halk Sigorta to the Public Disclosure Platform, the Company has applied to the Capital Markets Board to increase its share capital from TL 70 million to TL 121 million through bonus issues.  Es Mali Yatirim has submitted the only bid amounting to TL 725 million in the tender held by the Savings Deposit and Insurance Fund for the sale of BMC Otomotiv ve Savunma Sanayi, a vehicle manufacturer. The Company has increased its bid to TL 751 million during the auction stage. The bid will be submitted to the approval of the Fund and then the Competition Board. PRIVATIZATION HIGHLIGHTS  As per the dailies, the tender for the privatization of Catalagzi Thermal Power Plant and the immovable properties used by the Plant has been completed. Five companies namely, Elsan Elektrik Gerecleri, Alsim Alarko Sanayi Tesisleri, Limak Insaat, Demir Madencilik and IC Ictas Enerji Uretim, have participated in the tender. Accordingly, Demir Madencilik has submitted the highest bid amounting to US$ 351 million.  Pursuant to the dailies, income amounting to US$ 767.1 million has been generated from privatization transactions in the first quarter of 2014. The bid deadlines for four power plants owned by Elektrik Uretim, Kalamis Marina, Derince Port and Games of Chance are 9 May, 12 May, 28 May and 27 June, respectively. Furthermore, it has been stated that thermal and hydroelectric power plants owned by Elektrik Uretim, Izmir Port, Haydarpasa Port, Istanbul Gaz Dagitim and the motorways and bridges are amongst the assets for which the privatization process will be initiated by the Privatization Administration this year. In addition, it has been stipulated that Orhaneli, Tuncbilek and Can will be out to tender for privatization. Page 2 cont’d. BANKING SECTOR NEWS     The aim of this weekly newsletter is to highlight mainly the regulatory changes made by the Turkish Government during the relevant week. The content of this bulletin is limited to those areas Taboglu & Demirhan advises its clients. It contains a general summary of the changes and the areas it covers are broader. Thus, one should not rely on it for specific advice. For further information or advice please contact Taboglu & Demirhan, a full-service law firm based in Istanbul.  As per the statement of GSD Holding  released in the Public Disclosure Platform, a share purchase and sale agreement has been signed with the Commercial Bank of China for the sale of 75.5% of the shares of the Holding in Tekstilbank in return for approximately TL 669 million. The transaction will be submitted to the approval of the general assembly to be held within the  first half of June 2014 at the latest. According to the decisions of the Banking Regulation and Supervision Agency published in the Official Gazette on 30 April 2014, the Agency has granted an operation permit to De Lage Landen Faktoring and  Istanbul Faktoring. The General Manager of Halkbank has stressed that the net profit of the Bank has been realized as TL 530 million in the first quarter of 2014. The value of its assets has increased by 4% and reached TL 146 million. On the other hand, the amount of cash loans increased by 4.8% and reached TL 89 million, whereas the amount of noncash loans has been TL 27 million. In accordance with the financial statements of Alternatifbank, a shareholder of which is Commercial Bank of Qatar, released in the Public Disclosure Platform, the net profit of the Bank has decreased by 77% to TL 5.7 million in the first quarter of 2014 when compared to the same period of last year. Garanti Bank has announced its financial statements dated 31 March 2014. Accordingly, the net profit of the Bank has decreased by 24% to TL 760.3 million in the first quarter of 2014 when compared to the same period of last year. The General Manager of Akbank has declared that the Bank has made TL 849 million gross profit in the first quarter of 2014. Furthermore, the Bank has reserved TL 188 million tax over the gross profit and generated a consolidated net profit in the amount of TL 661 million. Yapi Kredi Bank has announced its consolidated net profit amounting to TL 429 million in the first quarter of 2014. The revenue of the Bank has increased by 5% and reached TL 1 billion 938 million when compared to the same period of last year. Vakifbank has signed a syndication loan agreement with Libor + %0.90 and Euribor + %0.90 interest rate. The loan will be used in the financing of exports. COMPETITION NEWS  Pursuant to the information released on the website of the Competition Board, Fiba Saglik Yatirimlari, a company under Fiba Group, has applied to the Competition Board for the acquisition of the shares of Florence Nightingale Hastaneleri from Florence Nightingale Hastaneleri Holding and the establishment of a joint venture. The number of shares to be acquired has not been announced. ENERGY SECTOR HIGHLIGHTS  As per the decisions of the Energy Market Regulatory Authority published in the Official Gazette, the Authority has imposed an administrative fines on five real persons and legal entities, which acted against the Petroleum Market Law, in the amount of TL 2 million 70 thousand in total. cont’d. TABOGLU & DEMIRHAN Attorneys at Law Levent Cad. No. 9 1. Levent, 34330, Istanbul, Turkey E-MAIL: [email protected] www.taboglu.av.tr PHONE: (212) 339 8800 FAX: (212) 339 8899