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A new Joint Venture Agreement has been signed among Arçelik A.Ş, Koç Holding A.Ş. and LG Electronics, Inc. regarding the management and operations of our joint venture, Arçelik-LG Klima Sanayi ve Ticaret A.Ş. (Arçelik-LG), where our Company has a shareholding of 45% and our parent company, Koç Holding A.Ş., has 5% shareholding. New agreement will be effective until December 31st, 2023. The New Agreement, similarly to the previous agreement, will also be based on joint control (50:50) of Koc Group and LG Electronics. In addition to the existing product portfolio which comprise production of room air conditioning products (RACs), Arçelik-LG will also produce commercial air conditioning products (CACs) during the new partnership period in order to get prepared for the expected growth in CAC market . Moreover, based on the agreement made with LG Electronics, Inc, Arçelik A.Ş. will obtain the exclusive rights to sell LG branded commercial air conditioners in Turkey, excluding single CAC products, effective from April 2017.
This statement has been translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.
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