Sisecam - Glass of the World's Desire

Sisecam, the largest glass manufacturer in Europe, is about to complete the work to consolidate its divisions under one umbrella/one brand.

• The work involves consolidating all operational assets.

• Sisecam Group’s major subsidiaries including Anadolu Cam (glass packaging), Trakya Cam (glass architecture and auto-glass), Soda Sanayi (glass chemicals), and Denizli Cam (specialty glasswork) whose shares are publicly quoted on Borsa Istanbul will be delisted in October.

• The share capitals of subsidiaries will be merged and shareholders in divisions will then be given Sisecam shares in exchange of delisted stock.

• All divisions will be rebranded as and operationally consolidated under Sisecam.

• Delisting and operational consolidation of assets should bring about synergies of significance. The transaction is most likely margin accretive at Sisecam level.

• No financial statements for the New Sisecam are published yet. We have not seen any credible research estimating cost savings or revenue synergies.

• The New Co is conceivably trading below 5x on EV/EBITDA.

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