Reginal Thomas
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VW Scandal Interrupting $666 million sale of Turkish parts supplier

Volkswagen’s recent scandal over diesel emissions has slowed down the $666 million sale of Teklas Kaucuk, a Turkish parts supplier. Cooper Standard Automotive, Oaktree Capital Group and Esas Holding have all stepped back to fully assess the impact of the scandal on Teklas’ spinoff.

According to one source, “Teklas is a great firm with annual EBITDA of 75 million euros. Including the cash in its coffers, the sale value was estimated at over 600 million euros.” Due to the scandal bidders now want a lower price to buy the firm.

Raul Danon, a Teklas board member, admitted that bids from two investors fell through, but added that the Teklas and its advisors rejected them because the offers were too low. He said, “Our company is contatnly in focus from foreign investors. Recently two foreign investors submitted bids which we directed to our advisor. Both were rejected since they were not interesting.”