Doğan announces agreement to acquire Gama Recycle

Doğan Holding

Doğan Group of Companies announced that an agreement has been reached for the acquisition of 70 percent of the shares of Gama Recycle. In the statement, it was stated that the total investment amount is estimated to be 83 million dollars.

In the statement made by the company to the Public Disclosure Platform (KAP), it was stated that the company’s subsidiary Öncü Girişim Sermayesi Yatırım Ortaklığı A.Ş. (Öncü GSYO) reached an agreement with Kaplan Holding A.Ş. (Seller) regarding the purchase and transfer of shares corresponding to 70% of the capital of Gama Recycle Sürdürülebilir Teknolojiler A.Ş. (Gama Recycle), which operates in the field of polyester fiber, regenerated fiber and different types of recycled yarn production by recycling textile, pet bottle and packaging waste.

According to the statement, the company value of Gama Recycle was taken into account as 159.9 million dollars and the equity value as 49.6 million dollars.

The acquisition price of the shares corresponding to 70 percent of Gama Recycle’s capital will be a total of 34.7 million dollars (subject to closing price adjustments), part of which will be a cash payment to the Seller and the remaining part will be payments on behalf of the Seller in the capital increases planned to be made by Gama Recycle in order to strengthen the financial structure.

“Considering the cash payment to the Seller and the payments on behalf of both Öncü GSYO and the Seller in the capital increases planned to be made by Gama Recycle; it is estimated that the total investment amount for Öncü GSYO (subject to closing price adjustments) will be USD 83 million,” the statement said.

The share transfer transaction is expected to be completed following the application and approval of the Competition Authority and the fulfillment of all agreed closing conditions.

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