Turkey's Boyner Holding and Qatari investment firm Mayhoola have agreed to terminate their financial partnership by sharing Boyner Retail's existing company portfolio.
According to a statement released by Boyner, it has reached a deal with Mayhoola to restructure Boyner Retail and Textile Investments Inc., which incorporates Boyner Grand Retailing Inc., Beymen, AY Marka and Altınyıldız Textile.
Under the agreement, Boyner Holding will be the sole owner of Boyner Grand Retailing Inc. and Altınyıldız Textile, while Mayhoola will hold a majority share in Beymen and Ay Marka brands, with a 96.89 percent stake.
Prior to the agreement, Mayhoola had a share of 54 percent in Boyner Retail and Textile Investments Inc., while Boyner Holding held a 42.8 percent stake.
Mayhoola's investments in Boyner Group since 2015 and the acquisition of Beymen and AY Marka after the agreement will be the largest foreign investment in Turkish luxury retail and fashion sector to date.
Boyner Holding has picked Boyner Grand Retailing Inc., its largest group company, and Altınyıldız, representing the long-established tradition of the group.
Mayhoola, on the other hand, will incorporate Beymen, Turkey's largest luxury and fashion company, and Network within its global luxury portfolio of brands such as Valentino, Balmain, and Pal Ziler.
After the new structuring, Boyner Group will focus on multi-brand retailing with Boyner Grand Retailing Inc., fashion and multi-brand e-commerce with Morhipo, consumer technologies with Hopi, production of quality woolen fabrics with Altınyıldız, and special brand production and menswear retail with Altınyıldız Classics, as well as growth opportunities in multichannel retail.
The agreement reached between the two companies is expected to be completed in June 2019 following the legal procedures and necessary approvals.
Boyner Group CEO and Boyner Holding Chairman Cem Boyner stressed that all the Boyner Group companies would strengthen by increasing their investment opportunities and enhance their chances to lead the digital transformation in the retail world. Following the news, Boyner's shares on the Borsa Istanbul (BIST) were up 0.35 percent and were trading at TL 5.22 in the afternoon session.