Erdemir, one of Türkiye's leading steel producers, announced that it has reached an agreement to collect USD 105 million from its 95% subsidiary İsdemir, in addition to the advance payment of USD 100 million related to the damage compensation within the scope of insurance, in relation to the earthquake that occurred on February 6th, 2023.
However, the process regarding the total damage collection within the scope of insurance and future payments is still ongoing.
In addition, Erdemir Board of Directors decided to increase the share buyback budget from TL 1 billion to TL 3 billion. So far, the company has purchased 26 million shares at a cost of TL 974 million.
When the financial repercussions of the news are analyzed, experts expect the initial reaction towards the stock to be positive. However, the appetite for the stock is expected to be temporary due to the continued weakness in iron ore and steel demand and prices.
The statement made to KAP is as follows;
"Due to the earthquake that occurred on February 6th, 2023, an agreement has been reached for the collection of USD 105 million in addition to the advance payment of USD 100 million regarding the damage compensation to be collected within the scope of the insurance of İskenderun Demir ve Çelik A.Ş., a subsidiary of our Company.
The process regarding the total damage compensation to be collected within the scope of insurance is ongoing and efforts are being carried out with determination to complete the related damage process in 2024. Developments regarding the issue will be shared with the public."
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