UK retailer Tesco has gained control of small Turkish hypermarket chain Kipa by acquiring the necessary majorities of the unlisted A shares and listed B shares in a cash deal.
Kipa’s 100 percent equity capital cost is 75 million British pounds ($124 million) debt free, plus an additional payment in return for cash acquired on the balance sheet on closing. Tesco will be making a tender offer for the outstanding B shares as required by Turkish law.
“Kipa has a small and profitable chain of hypermarkets operating in a growing market,” said Chief Executive of Tesco, Terry Leahy. “We will be working with existing management and three of the current Kipa directors to serve Turkish customers…”
Britain's biggest retailer Tesco signed an exclusivity agreement with Kipa in August, forging a partnership between the two companies. Kipa operates five hypermarkets in the Aegean region with reported sales in 2002 of £124 million, pre tax profit of £4.7 million and has over 1,500 employees. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
