Sasa Polyester Announces a Significant Capital Increase

Sasa Polyester Sanayi A.S. (SASA), a leading entity in Turkey and ranked among the top five richest holdings in the country, announced today a no-fee capital increase through an official statement to the Public Disclosure Platform (KAP). The company, in a robust financial maneuver, will enhance its issued capital from TRY 5.41 billion (approximately $167.42 million) to TRY 43.28 billion (approximately $1.34 billion).

Sasa Polyester Announces a Significant Capital Increase
Sasa Polyester Announces a Significant Capital Increase

Sasa Polyester Sanayi A.S. (SASA), a leading entity in Turkey and ranked among the top five richest holdings in the country, announced today a no-fee capital increase through an official statement to the Public Disclosure Platform (KAP). The company, in a robust financial maneuver, will enhance its issued capital from TRY 5.41 billion (approximately $167.42 million) to TRY 43.28 billion (approximately $1.34 billion).

This massive capital increase is funded entirely through internal resources, in accordance with the principles set out by the Capital Markets Board regarding the adjustments due to inflation accounting. Sasa Polyester's strategic financial restructuring is aimed at effectively utilizing existing resources to bolster its financial foundation.

According to the financial statements aligned with Turkish Financial Reporting Standards (TFRS), the increase will be financed with TRY 23.84 billion (approximately $738.03 million) from prior years' profits, TRY 9.16 billion (approximately $283.37 million) from capital adjustment differences, and TRY 4.87 billion (approximately $150.74 million) from extraordinary reserves. Additionally, the adjustment under legal records prepared according to the Turkish Commercial Code will involve TRY 29.26 billion (approximately $905.50 million) from past years' profits and TRY 8.61 billion (approximately $266.48 million) from capital adjustment differences.

The strategic decision by Sasa Polyester will not only strengthen the company but also provide significant benefits to its shareholders. The company plans to distribute the newly issued shares proportionally to the existing shareholders at no cost, granting a 700% no-fee share distribution, reflecting a significant value addition to its shareholders.

Moreover, this substantial financial development necessitates amendments to the company’s Articles of Association. SASA's Board unanimously agreed to modify Article 8 titled "Capital" of the Articles of Association in accordance with the capital increase operations.

Sasa Polyester's latest decisions mark strategic steps toward reinforcing its long-term growth strategies and enhancing its strong position in the market. The implications of these decisions on the market and their perception among shareholders will likely become clearer in the coming periods.