Global Yatirim Holding AS (GLYHO), a Turkish group active in energy, financial services and infrastructure, surged after saying it hired JPMorgan Chase & Co. to study options including the sale of its port management unit.
Global Yatirim advanced 5.6 percent to 1.32 liras at 4:10 p.m. in Istanbul today, heading for the highest close since Sept. 25. About 6.4 million shares traded, more than seven times the three-month average, according to data compiled by Bloomberg.
Global’s statement to the Istanbul Stock Exchange followed a report on the planned sale by Mergermarket, a provider of news and data on acquisitions. Investors may be responding to the reported valuation of ports unit Global Liman Isletmeleri AS, which was significantly higher than industry averages, according to Alper Akalin, an analyst who covers the company at Istanbul- based Ekspres Invest.
While port companies are typically valued in sales at about 12 times enterprise value to earnings before interest, taxes, depreciation and amortization, the figure mentioned by Mergermarket is equivalent to about 20 times, Akalin said in a phone interview today.
Global’s ports unit, Global Liman, may be valued at between $750 million and $1 billion, according to Mergermarket, which said the company is “looking to make the sale at this range” and cited “a source close to the matter.”
Global Liman is a majority owner of ports in Turkey including Port Akdeniz in Antalya, Ege Ports in Kusadasi, Aydin and the Bodrum Cruise Port in Mugla.
The company reported net income of 145.8 million liras ($82.2 million) for the third quarter last year, according to data compiled by Bloomberg. Global trailed gains on the Istanbul Stock Exchange National 100 index last year, adding 14 percent compared with a 53 percent increase on the gauge.
“Ports are the most important assets in Global Yatirim’s portfolio,” Akalin said. “The stock has upside potential, but there are many unknowns here.”
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