Yildiz Holding planning to be Turkey's biggest retailer
A101 is an unlisted food retail chain operating in the hard discount segment with a sales network of c.2,050 stores. Yildiz Holding acquired the SOK discount chain in 2011 and they recently finalized the acquisition of another discount chain DiaSa. If the company manages to acquire A-101, they would be the largest market player in terms of the number of stores (c.4,500 stores) and would surpass Bim (3,751 stores). Such a move will definitely translate into a huge economies of scale advantages and would be a giant move in terms of consolidation in the organized retail sector which would trigger a higher level of consolidation in the overall market as well (capturing the market share from unorganized retail players).
We recently came across A101 CEO Erhan Bostan's comments indicating that they generated TRY 2.1bn in revenue in 2012 and target TRY 3.3bn for 2013, implying 55% y/y growth. Accordingly, although we do not know the level of the company's net debt and we are unsure whether the deal price mentioned in the news implies an equity value or enterprise value, we believe that an enterprise value lower than TRY1bn for such a deal would be surprising as A-101 would deserve an EV/Sales multiple at least as much as what DiaSa recently received, which was 0.3x whereas a figure close to 0.5x is more likely, in our view.
Source: balkans.com
