Koç Holding Sells SEK Brand

Tat Gıda, a subsidiary of Koç Holding, announced that it has sold all its assets related to the dairy and dairy products business line, including the Sek brand, to Çallı Gıda for TRY 240 million, according to a disclosure filed with the Public Disclosure Platform (KAP). The acquisition was completed through CLA Süt ve Süt Ürünleri, a newly established company by Çallı Gıda. In its statement, Tat Gıda stated that within the framework of the company's long-term business plans, a decision was made to focus on tomato paste and canned products business line, which is the core operation and holds a higher share in total profitability, and to divest all assets in the dairy and dairy products business line.

The statement provided the following details.

"In this context, an asset purchase agreement has been executed between our Company and CLA Süt ve Süt Ürünleri Gıda Sanayi Ticaret A.Ş. (the "Buyer"), which is not an affiliated party of our Company, and Çallı Gıda Sanayi ve Ticaret A.Ş. (the "Guarantor"), concerning the transfer of our Company's assets in the dairy and dairy products business line. Under the transaction, the Mustafakemalpaşa Production Facility in Bursa and the Söke Production Facility in Aydın, along with the real properties on which these facilities are located, machinery and equipment at these facilities, all intellectual property rights including the Sek brand related to the dairy and dairy products business line, domain names and social media accounts, inventories, relevant employees in the business line, relevant incentive certificates, and certain supply and subcontracting agreements related to the business line will be transferred to the Buyer. Within this scope, our activities in the dairy and dairy products business line will be discontinued following completion of the sale transaction. The total sales price determined through negotiation under the agreement is TRY 240,000,000 excluding VAT, of which TRY 105,000,000 is allocated to the real properties, TRY 51,756,727 represents the estimated inventory value based on data as of 30 September 2020 for all inventories that may be transferred at closing, and the remaining TRY 83,243,273 represents the sales price of other transferred assets. The transfer of finished goods inventories, which comprise approximately TRY 20 million of the estimated inventory value, to the Buyer or directly to third parties will be finalized at the closing stage, and the sales price will be subject to adjustment based on the difference between the actual value of all inventories to be transferred to the Buyer on the closing date and the estimated inventory value stated above. Additionally, severance pay and other obligations accrued by employees to be assumed by the Buyer as of that date will be deducted from the total sales price." Source