Paris's airport operator Aéroports de Paris (AEOPF.PK) has agreed to buy 38 percent stake in peer TAV Havalimanlari Holding's issued share capital for a total consideration of $874 million, the company said in a regulatory filing Monday.
Aéroports de Paris management entered into share purchase agreements with Akfen Holding A.S., Tepe Insaat Sanayi A.S. and Sera Yapi Endüstrisi ve Ticaret A.S. for buying a portion of shares of TAV Havalimanlari Holding A.S. A purchase agreement was also signed with TAV Yatirim Holding A.S., owner of TAV Construction, an unlisted company.
Reports suggested that French construction company Vinci was also a bidder for the stake, but was unwilling to raise the offer.
Turkey-based TAV was born out of the privatization of Istanbul Ataturk International Airport. In 12 short years, it expanded to 12 airports in five countries.
The deal values TAV Havalimanlari Holding equity at $2.3 billion, and offers a 32 percent premium to its latest closing price. In addition, 49 percent of TAV Yatirim Holding's issued share capital will be acquired for a consideration of $49 million, valuing the company's equity at $100 million.
Aéroports de Paris, which manages the projects at Muscat and Tripoli airports, expects to achieve double-digit returns on equity from this deal. The transaction is expected to be earnings per share accretive from 2013.
Aéroports de Paris group focuses on investments in international airports that serve above 10 million passengers. The invested airports have strong EBITDA growth potential and are located in OECD and BRIC countries.
The partnership will manage around 180 million passengers in 37 airports directly or indirectly. It would allow TAV and Aéroports de Paris group to leverage their skills and geographical presence to boost international developments, particularly outside Turkey, to further grow asset base.
The investment in TAV will be financed using existing cash and already secured acquisition debt financing.
Pierre Graff, Chairman and CEO of Aéroports de Paris, said, "The partnership with TAV is a major strategic investment for Aéroports de Paris group...The combination will become a leading worldwide airport operator group, with a long lasting growth perspective...Moreover, Turkey is one of the fastest growing countries in OECD with a favourable business environment."
The Board of Directors of TAV Havalimanlari Holding will consist of eleven members. Hamdi Akin and Dr. M. Sani Sener will continue in their positions as Chairman of the Board of Directors and CEO & President of TAV Havalimanlari Holding, respectively.
Tepe Insaat & Akfen Holding will together appoint three members, Aéroports de Paris will also appoint three members of the Board of Directors of TAV Havalimanlari Holding.
The CEO & President of TAV Havalimanlari Holding will serve as the executive Board member and there will be four independent board members.
Aéroports de Paris shares closed higher by 0.31 percent at 60.31 euros on Friday on a volume of 93,395 shares.
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by RTT Staff Writer
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