Halcor S.A., pursuant to its strategic development plan to expand operations into new more profitable markets, signed an agreement for the acquisition of 50.1% of the Turkish company Sega Bakir SA, which is active in the production and distribution of copper tubes and bus bars. The acquisition is pending the approval of the Turkish authorities and in specific of the Turkish Competition Board.
Sega Bakir S.A., is located in Istanbul and currently operates a manufacturing plant of 5,000 tons capacity in Izmit, where it produces mainly bus bars and copper tubes for industrial use (i.e. fridges, air conditioning). The distribution of the Company's products is been done through an extensive sales network that the company has developed.
The acquisition will be realized via a rights issue and subsequent share capital increase of Sega Bakir S.A., and the acquisition price is estimated not to exceed euro 1 million, which will be financed from Halcor's cash deposits.
The main purpose of the acquisition is to introduce HALCOR into the large Turkish market and in essence into the Near and Far East markets where the group has spotted substantial growth opportunities.
The expected benefits for Halcor from the upcoming acquisition are multiple both at the commercial as well as the operating level. In more detail, after acquiring control of Sega Bakir S.A., Halcor will set the grounds for expanding further its operations in the neighboring country, enhancing this way its clientele base across the border. Moreover, on the corporate side, Sega Bakir's acquisition is expected to have a positive impact as well, as the development of the Sega Bakir operations through new investments and know-how transfer will act as a model for the expansion of the group's operations in the Near and Far Eastern area.