Agreement is signed for the sale of Havaş for 180 million Euros
The trigger has been pulled on a deal for the sale of Yer Hizmetleri A.Ş (HAVAŞ), wholly owned by TAV Airports Holding Co. The parties agreed to the partnership agreement signed on 16th October 2009 to sell HAVAŞ to a Company jointly founded by İş Girişim Sermayesi Yatırım Ortaklığı, TAV Airports Co., TAV Operational Services Co., TAV IT Services Co. and HSBC Investment Bank Holdings plc for 180 million Euros.
The acquisition of Havaş will be finalized upon receiving necessary approval from local authorities. Regarding the final partnership structure; TAV Airports will retain 65%, İş Girişim Sermayesi Yatırım Ortaklığı will own 6.7%, and HSBC Principal Investments will own 28.3% of shares in the company.
TAV Airports Holding CEO Dr. Sani Şener stated: “TAV Airports is proud to sell 35% of its shares of Havas, the first and largest ground handling services company in Turkey, serving 18 airports, to İş Girişim and HSBC Principal Investments. Our partnership, occuring during a period of debate as to whether the economical crisis has lifted or not, provides evidence of our solid financial structure and the reliance placed on our industry.”
Şener also expressed: “Through the sale of minority shares, we aim to reduce the indebtness and create additional resources to bid on new projects. We are optimistic that the public offering of Havaş, delayed because of the global crisis, can be accomplished as capital markets improve.”
Dr. Ahmet Erelçin, Vice Chairman of the Management Board of HSBC Portföy Yönetim A.Ş., which has provided consultancy services for HSBC Principal Investments in this transaction called attention to the importance of Turkey as a regional transportation center, commenting about the acquisition: “The dynamic growth in Turkish aviation, the strength of Havaş in the industry, its dynamic business model and the regional success achieved by TAV Airports in a relatively short time are the facts which were considered in deciding on this investment. In light of these considerations, HSBC Principal Investments appraised Havaş as an exciting investment opportunity. We believe that our collaboration with the rapidly-expanding TAV Airports family will yield positive results for both parties.”
Ahmet Erelçin emphasized that the acquisition during the global economical crisis indicates the trust of HSBC in the Turkish economy stating, “The demand of foreign Private Equity Funds, which invested 6.6 billion dollars in Turkish companies in the years 2007-2008, has come to a standstill due to the global crisis. We believe that this acquisition is a positive development for our country, as it is ground-breaking for transactions during 2009.”
İş Girişim Sermayesi General Manager Murat Özgen stated that they have increased the number of investments they have made until this point to 12 with the Havaş investment: “With the Havaş investment, İş Girişim Sermayesi will have made 2 large investments in the last 12 months during the global crisis, which shows its continuing support for Turkish companies.” Murat Özgen expressed that he is very glad to become a partner of Turkey’s oldest ground handling company, adding that Turkey is a bridge between continents which will benefit more from tourism and international increased business potential due to globalization. “Havaş makes a significant contribution to the development of the Turkish aviation industry due to its continuing development under the umbrella of TAV Holding, as evidenced by the various international quality awards it has received. In addition to this added value, Havaş supports the ascendance of the Turkish aviation industry in the international arena by exporting its experience and know-how.”
“Our investment in Turkish aviation through becoming involved with Havaş is an indication of İş Girişim Sermayesi’s support for the projects of Turkey’s competitive companies that will contribute to the Turkish economy.” Özgen also stated, “İş Girişim Sermayesi has invested in 11 companies at present. During the global economic crisis many companies have lost revenues and profits. However, the firms in which we have invested increased their revenues by 50% and profit by 100%.” Özgen emphasized that İş Girişim Sermayesi is growing with the companies it has invested in, adding that it is a significant source of pride for them to contribute to the success stories of their affiliates.
Havaalanları Yer Hizmetleri A.Ş. (Havas) is Turkey’s first and largest ground handling services company, currently serving 18 airports. Havas was founded as a state enterprise in 1933 to provide ground handling and catering services to airlines. The Company’s catering services division was spun off as a separate company in 1987, whereas the ground handling services division continued its operations under the Havas name as the most experienced ground handling services company in Turkey. Havas was privatized in 1995 as the first, and most successful, privatization in Turkey. In 2005, 60% of Havas was acquired by TAV Airports, whereas the remaining shares of Havas were acquired in 2007. As a result, Havas became a wholly-owned subsidiary of TAV Airports Holding. Being the oldest ground handling services company of Turkey, Havas provides passenger and baggage transactions, ramp and aircraft cleaning, load control and communications, cargo, flight operation, transportation, representation and monitoring services. The Company provides ground handling services at the İstanbul Atatürk, Ankara Esenboğa, İzmir Adnan Menderes, Adana, Antalya, Bodrum, Dalaman, Gaziantep, Trabzon, Kayseri, Nevşehir, Batman, Konya, Sivas, Adıyaman, Şanlıurfa, Elazığ and Muş airports. Havas has an extensive portfolio of over 200 airlines, serving scheduled as well as chartered flights. In an attempt to deliver better, higher quality and faster service to its customers, Havas also provides import warehousing services. Its warehousing capacity is approximately 700 tons per day. Havas has also operated the Hopa Passenger Terminal since December 2007. The Hopa Terminal is connected to the Batumi International Airport, operated by TAV Airports Holding. Hopa Terminal provides an easy travel option to the Eastern Black Sea region due to its proximity to the area. Havas provides passenger transportation services between the airport and the city center at the İstanbul Atatürk, İstanbul Sabiha Gökçen, Ankara Esenboğa, İzmir Adnan Menderes, Antalya, Bodrum, Dalaman, Malatya, Samsun, Hatay, Gaziantep, Konya, Hopa and Şanlıurfa airports, as well as parking services at the Bodrum Airport.
About TAV Airports Holding:
TAV Airports Holding, the leading airport operator in Turkey, is currently operating the Istanbul Ataturk, Ankara Esenboga International and Domestic Terminals, Izmir Adnan Menderes Airport International Terminal and Antalya Gazipaşa Airports in Turkey, the Tbilisi and Batumi International Airports in Georgia, as well as the Monastir Habib Bourguiba International Airport in Tunisia. Additionally, TAV operates the Enfidha-Hammamet International Airport in Tunisia, Alexander the Great International Airport in Skopje, the capital of Macedonia, and the St. Paul the Apostle International Airport in Ohrid. TAV Airports also actively participates in other areas of airport operations; ground handling and management services, duty free, food and beverage services, IT and security. TAV Airports Holding provides services for approximately 370,000 flights by 300 Airline Companies and 41 million passengers every year.
About HSBC Principal Investments:
Headquartered in England, HSBC Principal Investments has been committed to the business of Private Equity for 40 years and carrying out investment activities by HSBC Investment Bank Holding plc. Having private equity businesses in England, the Middle East, India, Hong-Kong, Latin America, and North America, HSBC Principal Investments’ total investment portfolio exceeds 11 billion dollars.
About HSBC Portfolio Management Co.:
Established as an associate of HSBC Bank A.Ş. in 2005 in Turkey, HSBC Portfolio Management Co. provides fund management, private portfolio management and private equity investment consultancy services. The total value of the funds managed by the company exceeds 1.2 billion dollars.
About İş Girişim Sermayesi Yatırım Ortaklığı A.Ş.:
Set up as an indirect affiliate company of İş Bank in 2000, İş Girişim Sermayesi offers management know-how and capital support for companies with high growth potential. It is designated as Turkey’s largest local venture fund. At present, İş Girişim Sermayesi has investments in Probil, ITD, Cinemars, Nevotek, Step Halı, Tüyap, Beyaz Filo, ODE, Ortopro, Türkmed ve Frik İlaç 61 million dollar equity in 11 companies in total, namely Probil, ITD, Cinemars, Nevotek, Step Halı, Tüyap, Beyaz Filo, ODE, Ortopro, Türkmed and Frik İlaç, creating external resources upwards of 300 million dollars. İş Girişim Sermayesi has liquidated shares in; Cinemars, Tüyap, Step Halı and Beyaz Filo gaining 76% revenue from these liquidations.