MIGROS SIGNS SHARE TRANSFER AGREEMENT WITH TESCO
10 June 2016
Özgür Tort, CEO of Migros Ticaret A.Ş.:
“MIGROS ENLARGES RETAIL KNOW-HOW IN TURKEY AND STIMULATES GROWTH”
MIGROS AND TESCO MADE A PUBLIC DISCLOSURE TO ANNOUNCE THAT THEY REACHED AN AGREEMENT FOR THE TRANSFER OF SHARES OF INTERNATIONAL RETAILER TESCO’S SHOPPING MALLS AND STORES IN TURKEY.
Migros reaches a new milestone in its 62-year growth journey in the Turkish retail business. Last year Migros opened 257 new stores, mostly with the funds the company generated thanks to its focus on efficiency. In line with its ambitious growth targets, Migros is buying the Tesco Kipa Shopping Malls and stores of Tesco, the international retail chain, in Turkey. Migros incorporates 26 shopping malls and 168 stores of Tesco in 21 cities in Turkey. This means that Migros, which has been investing in supermarkets, is now also investing in shopping malls and becoming one of the largest shopping mall investors in Turkey. Commenting on the share transfer agreement with Tesco, Migros Ticaret A.Ş.’s CEO Özgür Tort said, “Migros not only grows through organic and inorganic means but stimulates growth in the retail market. We are taking confident steps while benefiting from the long-term strategic vision of our shareholders Anadolu Group and BC Partners. This agreement will bring 26 shopping malls into our system, enlarging our retail know-how to shopping mall segment. Our customers’ “Good Life” dream is our business plan. Migros’ customers and employees are its strength. We serve millions and hold a mirror to Turkey with 32 thousand employees including indirect employment. After the approval, that will increase nearly 40 thousand”.
Migros and Tesco announced that they reached an agreement for the transfer of shares of UK-based retail giant Tesco’s stores in Turkey. Migros Ticaret A.Ş. will be buying the 26 shopping malls and 168 stores of Tesco Overseas Investments Limited in 21 cities in Turkey. The agreement will become official after approval by the Competition Board and will result in the transfer of shares. The agreement stipulates that Migros Ticaret A.Ş. will purchase 95.5% of the shares of Tesco Overseas Investments Limited in Tesco Kipa Kitle Pazarlama Ticaret ve Lojistik ve Gıda Sanayi A.Ş. for approximately TL 302 million, subject to further closing adjustments. The turnovers of Migros and Kipa were TL 9.4 billion and TL 2.2 billion respectively as of the end of 2015. Migros Ticaret A.Ş. currently has 1,454 stores in 72 cities in Turkey and a total of 1,494 stores around the world. Last year Migros added 257 new stores to its portfolio. It owns 4 shopping malls in Turkey and 6 shopping malls in total.
The partnership of Anadolu Group and BC Partners stimulates Migros’ growth
Özgür Tort, CEO of Migros Ticaret A.Ş., said under BC Partners’ ownership over the last seven years the business has significantly strengthened its market position, more than doubling the number of stores and the company's sales. In 2015, Anadolu Group acquired half of BC Partners stake, further accelerating Migros’ growth.
“Migros has grown by an average of above 12% for last three years. In 2015, its growth rate was 15.6%, well above average. We open on average 200 new stores every year mostly thanks to the funds we generate through efficiency. We always focus on sustainable growth.”
Tort said that the company has always been on the watch for acquisition opportunities. “The Tesco-Kipa deal is a natural outcome of this process and has been supported by Anadolu Group and BC Partners. Migros’ appetite for constant growth is a good reference for the retail sector and the Turkish business world. The organic and inorganic growth of Migros not only grows the company but also stimulates growth in the retail sector. The sustained and stable growth of Migros is also an indication of Turkey’s expertise in retail sector.”
“We are enlarging our know-how in supermarkets to shopping mall investments”
Özgür Tort stated that Tesco, with whom Migros signed a share transfer agreement in line with its growth targets, is one of the leading retailers of the UK and the world. “Tesco has significant retail know-how in the global arena. We will carry our retail knowledge to a new dimension with the stores and employees that will be joining our company. We will be able to offer even better services.”
Tort said that Migros will integrate the 26 shopping malls that now belong to Tesco into its own structure. “In this new era, we will transfer to our shopping mall investments the experience and know-how we built in the retail supermarket business in 62 years. This agreement will make us one of the largest shopping mall investors in Turkey. We believe in Turkey’s potential and future; we ensure efficient sustainable growth through investments, services and job creation. Migros has 4 shopping malls in Turkey and a total of 6 shopping malls. After adding Tesco’s 26 shopping malls to its portfolio, with a total of 30 shopping malls in Turkey, Migros will become among the largest investor in shopping malls.”