Linc Limited (LINC) and Silka Kirtasiye Imalat Sanayi Ve Ticaret Limited Sirketi (SILKA) have entered into a Joint Venture Agreement to manufacture writing instruments in Turkey and distribute them in Turkey and nearby countries.
The initial capital for the proposed joint venture, Silka Linc Imalat Anonim Sirketi, will be USD 1 million, with each party holding a 50% share. Key terms of the agreement stipulate that both LINC and SILKA can appoint two directors each, with LINC nominating the Chairman and SILKA nominating the Managing Director. Certain decisions will require the affirmative vote of both parties at shareholder meetings, and LINC will have the right to appoint auditors.
There are no relationships between the parties and any promoter or group companies, nor will these transactions be classified as related party transactions, as they are conducted at arm’s length. The equity shares of the joint venture will be issued at par to both LINC and SILKA, with no potential conflicts of interest arising from the agreement.