Bloomberg News

TAV Rises to Five-Year High on Airport Prospects: Istanbul Mover

January 17, 2013

TAV Havalimanlari Holding AS (TAVHL), Turkey’s biggest airport operator, rose to the highest in 5 1/2 years after a minister said details of a tender to build Istanbul’s third airport will be announced in a week.

TAV, in which Aeroports De Paris acquired a 38 percent stake last year, climbed 1.5 percent to 10.20 liras at the close in Istanbul today, the highest level since July 2007. The stock is rated buy by 16 out of 24 analysts, according to data compiled by Bloomberg.

Details of the tender have been “completed to a great extent,” Transport Minister Binali Yildirim was cited as saying by the state-run Anatolia news agency today. The airport will have a capacity of 150 million passengers a year, the minister said in May.

“TAV is the most probable candidate to operate this new airport,” Alper Ozdemir, an analyst at Istanbul-based Oyak Securities, said by phone today. “Operating Istanbul’s Ataturk Airport, it has the experience and the know-how. Its partnership with Aeroports De Paris (ADP) is another plus.”

The company’s third-quarter profit rose 36 percent to 122.6 million liras ($69.8 million). The shares trade at 13.7 times current earnings, compared with 17.7 for Aeroports De Paris, 14.9 for Germany’s Fraport AG, 18.3 for Singapore’s SATS Ltd. (SATS), according to data compiled by Bloomberg.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net


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