Jun 28 2018

Yildiz attracts bids for brickmaker valued at $500 million

Yildiz Holding, which just agreed Turkey’s biggest corporate loan restructuring, is now in negotiations to sell its brick-making business for about $500 million< Bloomberg reported citing three people with knowledge of the potential deal.

Yildiz, the owner of Godiva chocolates and McVities biscuits, and its private equity firm Gozde Girisim are in talks with potential buyers from Russia, Europe, India and China to sell Kumas Manyezit, the people said, according to Bloomberg journalist Ercan Ersoy.

Yildiz, one of Turkey’s largest industrial conglomerates, is among Turkish firms that have made acquisitions in recent years that have left them with billions of dollars of debt. The loans – Yildiz restructured two totalling $6.5 billion in May -- have become more difficult to repay after a slump in the Turkish lira’s value against major currencies.

The sale of assets was a condition of the loan agreements. Yildiz and Gozde sold a stake in discount grocer Sok last month in an IPO that earned them nearly $500 million.

One of the European bidders is from France, two of the people said, according to Ersoy. RHI Magnesita of Vienna is also among those interested.

Yildiz Holding, which bought Godiva in December 2007 for $850 million, declined to comment on the potential sale of the brickmaker. RHI Magnesita said “there is currently no agreement in relation to Kumas Manyezit Sanayi AS and there can be no certainty that any transaction will occur at all,” Bloomberg said.