TAV Airports enters into a contract for the acquisition of 38% of its issued shared-capital by Aéroports de Paris Group.
The transaction stipulates the sale of 38 per cent of TAV Airports' issued share capital to Aéroports de Paris Group for a total consideration of 874 million USD. The sale value was determined based on the 32 per cent premium of the company's latest closing price. Mr. Hamdi Akın and Mr. Sani Sener will be continuing in their positions. The two companies provide service for 180 million passengers at 37 airports in total.
Tepe Construction, Akfen Holding and Sera Yapı of TAV Airports Holding and TAV Investment Holding have signed contracts with Aéroports de Paris Management (ADPm) -a wholly owned subsidiary of Aéroports de Paris (ADP) - for the sale of portion of their shares.
With the transaction stipulated in the share purchase contracts, 38 per cent of TAV Airports Holding's issued share capital will be sold for a total consideration of 874 million USD. The transaction valued TAV Airports Holding equity at 2.3 billion USD, equivalent of 11.3 Turkish Lira per share. This amount equals to 32 per cent premium based on TAV Airports Holding's latest closing price.
In addition, 49% of TAV Investment Holding's issued share capital shall be sold for a consideration of 49 Million USD. The transaction values TAV Investment Holding's equity at 100 million USD. TAV Investment Holding is a non-public company who owns 100% shares of TAV Construction.
Akın and Sener keep their positions in management
Hamdi Akın and Sani Sener will continue in their positions as Chairman of the Board of Directors and CEO of TAV Airports Holding, respectively. The Board of Directors of TAV Airports Holding will consist of eleven members. While Tepe Construction & Akfen Holding together will appoint three members; CEO Sani Sener will also be a member of the Board. Aéroports de Paris will also appoint three members of the Board of Directors. There will also be four (4) independent members in the Board of Directors.
TAV Airports CEO Sani Sener said "We believe that our brand, which was born out of the privatization of Istanbul Ataturk International Airport and which we expanded to 12 airports in five countries in just 12 years, will be able to target even more ambitious goals through the collaboration we have realized with Aéroports de Paris, one of world's leading airport operators. The partnership of these two global airport brands in managing and building airports will result in the extensive know-how stemming from the operation of 37 airports serving 180 million passengers around the world. We have brushed shoulders in the past with Aéroports de Paris all around the world, sometimes as a partner and sometimes as a competitor. We know each other very well in the aviation industry. Aéroports de Paris currently manages the projects at Muscat and Tripoli airports. We have also worked together at the Emirates A-380 aircraft hangars project in Dubai Airports. We are confident that this collaboration will further enhance the success we have gained as a Turkish firm and will lay new growth opportunities before us. We will continue to work towards creating the best value for all our stakeholders, especially for our employees and our customers. As TAV, we have always aimed at becoming the best. Today, we have sealed a great strategic partnership to this effect. Our collaboration with Aéroports de Paris will also be a source of major capital inflow to Turkey hence we will be able to pursue our dreams and targets one step further."
Pierre Graff, Chairman and CEO of Aéroports de Paris said: "The partnership with TAV is a major strategic investment for Aéroports de Paris group. TAV is a high performing airport operator with a talented management, which has achieved continuous growth and impressive results in the past few years. Moreover, Turkey is one of the fastest growing countries in OECD with a favorable business environment. The high quality of the airport portfolio, in Turkey and abroad, is very attractive, as all airports have been recently built, are best-in-class in terms of quality, and have ample room for growth. Not only the geographic proximity but also the cultural and business model proximity of both companies will ease future development plans, in particular in new airports investment opportunities. Fully in line with our international strategy, this transaction will have a strong positive impact on the Group's performance."
The successful growth, which TAV Airports has achieved through integrated business model that requires diversity, is also in line with Aéroports de Paris' international growth strategy. The coalition of TAV Airports and Aéroports de Paris will lead to one of the world's largest collaborations in the airport operation sector. The collaboration between the two companies will lead to sharing experience, know-how and portfolio as well as growth through systematic work, and career opportunities for employees within both groups. As a result we will see an association with a potential for an outstanding growth both organically and through future partnerships.
The share purchase agreements are expected to be finalized upon regulatory approvals.
The selling shareholders were advised by Credit Suisse, Pekin & Bayar and Ertekin Law Office. Aéroports de Paris was advised by J.P. Morgan, Hogan Lovells and Pekin & Pekin.
About Aéroports de Paris
Aéroports de Paris develops and manages airports including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2011, Aéroports de Paris handled more than 88 million passengers and almost 2.5 million tons of freight and Mail.
With an exceptional geographic location and a major catchment area, the Group is pursuing its strategy of adapting and modernizing its terminal facilities and upgrading quality of services, and also intends to develop its retail and real estate business. In 2011, the group Revenue stood at €2,502 million.
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About TAV Airports
TAV Airports maintains its leading position in airport operations sector in Turkey. TAV Airports operates Istanbul Ataturk, Ankara Esenboga, Izmir Adnan Menderes and Antalya Gazipasa Airports in Turkey as well as Tbilisi and Batumi Airports in Georgia, Monastır and Enfidha-Hamammet Airports in Tunisia and Skopje and Ohrid Airports in Macedonia. During the first half of 2012, the Holding will be undertaking the operation of Medina Airport, the first airport privatization in Saudi Arabia. TAV Airports also operates in other areas of airport operations including duty-free, food and beverage services, ground services, IT, security and operation services. In same context, TAV Airports also operates duty free, food and beverage and other commercial areas at Riga Airport in Latvia. Together with its subsidiaries, the company provides services to approximately 451 thousand flights and 53 million passengers a year.
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About TAV Investment Holding
Established in 2003 under TAV, TAV Construction has so far undertaken a total of 3 million square meter construction projects, as a Contractor. With its head office in Istanbul, TAV Construction operates in Egypt, Qatar, Dubai, Abu Dhabi, Macedonia, Oman, Georgia, Tunisia, Saudi Arabia and Libya. In addition to airport construction, the company, with its highly experienced staff, also provides technical maintenance and repair support, one of the limited areas of supply worldwide. TAV Construction also offers consultancy services in airport infrastructure area, which has a growing demand worldwide. TAV Construction has been awarded the 4th Largest Airport Construction Company in the World by Engineering News Record (ENR) in 2011.
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