ERJ staff report (SS)
Kortrijk, Belgium -- NV Bekaert SA has signed a letter of intent to acquire full ownership of Beksa Celik Kord Sanayi ve Ticaret AS (Turkey), the joint venture company that it set up with Haci Ã–mer Sabanci Holding AS, for an estimated Euro 40.3 million.
Bekaert already has a 50 percent stake in the joint venture company, which manufactures steel cord products and Dramix metal fibres for industrial applications, as well as the automotive and building industries.
Located in Izmit, Beksa, Beksa employs around 330 people and recorded € 80 million sales in 2006.
Sabanic Holding said, in a 19 Feb statement that, it decided to sell its shares to Bekaert due to the fact that it has â€œbecome less aligned with the long-term strategy for the company,â€ as a result of Beska's increasing international client portfolio.
Marc Vandecasteele, group executive vice president of Bekaert, said that the agreement will allow Bekaert to â€œfully integrateâ€ Beksa into its global manufacturing portfolio.
â€œBeksa will be further developed both as a key supplier to the growing domestic tyre market and as an export base,â€ said Vandecasteele.
â€œAlong with our local management we will pursue our business strategy to deliver high quality products to our customers,â€ he added.
Bekaert said that the transfer of shares will be executed after receiving approvals from the respective authorities.
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Press release from Bekaert