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ADP to buy additional stake in Turkey's TAV for $160 million
June 9, 2017 / 6:50 AM / 6 months ago

ADP to buy additional stake in Turkey's TAV for $160 million

(Reuters) - French airport operator ADP (ADP.PA) said on Friday it plans to increase its stake in Turkish airport operator TAV Airports (TAVHL.IS) to 46 percent.

FILE PHOTO: The logo of Turkish airport operator TAV is pictured at Ataturk airport in Istanbul, Turkey, June 29, 2016. REUTERS/Murad Sezer/File Photo

ADP, operator of the Charles De Gaulle and Orly airports in the Paris region, is TAV Airports’ largest shareholder with a 38 percent stake. It plans to buy the 8.12 percent stake of second-largest shareholder Akfen Holding for $160 million.

Turkey-based Akfen Holding plans to use the revenue from the stake sale to contribute to a 6.7 billion lira ($1.9 billion) investment program in Turkey focused on hospitals and energy projects, it said in a statement.

Hamdi Akin, chairman of Akfen Holding and TAV Airports, said TAV will remain a Turkish company, with its listing in Istanbul.

The transaction values TAV Airports’ equity at around $2.0 billion, or 19.2 Turkish lira per share.

FILE PHOTO: A Turkish Airlines counter is pictured at Ataturk International airport in Istanbul, Turkey, March 24, 2017. REUTERS/Murad Sezer - RTX32IJY/File Photo

TAV Airports shares were up 3.2 percent at 0740 GMT, while ADP shares were slightly down.

Tepe Insaat Sanayi and Sera Yapi Endustrisi ve Ticaret, two founding shareholders of TAV Airports, expressed support for the transaction, ADP said.

TAV operates 14 airports in Turkey and around the world, including Istanbul’s Ataturk airport, homebase of Turkish Airlines (THYAO.IS) and one of Europe’s busiest airports.

ADP expects the transaction to complete during the summer of 2017, after which it will fully consolidate TAV Airports in its financial statements.

ADP also said it would sell its 49 percent stake in TAV Construction for 9 million euros ($10 million).

Reporting by Ezgi Erkoyun and Wout Vergauwen; Editing by Dale Hudson and Jason Neely

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