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TAVHL - TAV Havalimanlari Holding AS News Story

TRY15.07 0.0  0.0%

Last Trade - 25/09/20

Mid Cap
Market Cap £558.2m
Enterprise Value £1.10bn
Revenue £503.4m
Position in Universe 52nd / 630

UPDATE 1-Malaysia Airport Holdings could sell stake in Istanbul's Sabiha Gokcen

Mon 27th October, 2014 3:18pm
(Adds background, quotes) 
    ISTANBUL, Oct 27 (Reuters) - Malaysia Airport Holdings Bhd 
(MAHB)  MAHB.KL  may sell a minority stake in Istanbul's Sabiha 
Gokcen airport (ISG) after taking full ownership of the 
business, expected in coming months, a senior company official 
told Reuters on Monday. 
    MAHB, which already owns 60 percent of Istanbul's second 
airport, said last Thursday it was exercising its right to 
refuse a 285 million euro ($360 million) offer from Turkey's TAV 
Holdings  TAVHL.IS  for the outstanding 40 percent and would 
instead buy the stake itself for the same amount. 
    "We are determined to have the majority stake at least for 
the short term," Khair Mirza, MAHB's senior general manager in 
charge of planning, said in an interview in Istanbul. 
    "We thought it was more prudent to take the 100 percent 
first, but we don't have the intention to hold 100 percent 
forever," Mirza said, adding it was too early to speculate on 
who a potential minority partner might be. 
    Mirza said MAHB's purchase of the outstanding shares in ISG 
was expected to be finalised in the first quarter of next year, 
pending regulatory approval, and said MAHB had credit lines 
available from banks to fund the deal. 
    ISG's passenger numbers grew by 30 percent year on year in 
the first nine months of 2014 to 7.7 million. Mirza said MAHB 
expected the airport to achieve growth in passenger numbers of 
at least 7 percent annually. 
    "In 2016, we expect to turn to profit in ISG. Our experience 
is that when you make investments up front in large airports, 
you make money starting from year six or year seven and there is 
a very small chance that we may see profit in 2015." 
    Mirza said MAHB, which bought the operating rights to Sabiha 
Gokcen in 2008, had invested more than 520 million euros so far 
in the airport. 
    (1 US dollar = 0.7888 euro) 
 (Reporting by Asli Kandemir and Evrim Ergin; Writing by Ece 
Toksabay; Editing by Nick Tattersall and David Holmes) 
 ((nicholas.tattersall@thomsonreuters.com; Reuters Messaging: 
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