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NEWS Last modified on October 31, 2011

TAV Airports put up for sale for €2bn

TAV Airports is remaining tight-lipped about speculation that is to be put up for sale for an asking price of €2 billion.

TAV Airports is remaining tight-lipped over speculation that is to be put up for sale for an asking price of €2 billion.
 

The Daily Telegraph has claimed that TAV Airports has started a sales process this weekend that will see it put on the market for €2 billion.
 

TAV Airports currently operates Istanbul Atatürk Airport, Ankara Esenboga Airport, Izmir Adnan Menderes Airport International Terminal and Antalya Gazipasa Airport in Turkey as well as two airports each in Georgia, Tunisia and Macedonia.
 

The Daily Telegraph reported that the operator has hired Credit Suisse to run the sales process and that bids were expected next month.
 

Only last month, Turkish construction company Akfen Holding stated that it was considering selling its 26.12% stake in TAV Airports Holding.
 

TAV Airports generated €753 million (USD$1.02 billion) consolidated revenues in 2010, and has continued to show strong growth over 2011.
 

For example, just last week the operator said it had increased its consolidated revenue by 28% and operational profit by 36% in the first nine months of 2011.
 

In total its third quarter profits increased 81% to €36.7million compared with the same time last year.
 

The company runs more than 420,000 flights each year with an aim to have 100 million passengers across its airports within the next 10 years.
 

For potential buyers, the most attractive aspect of TAV Airports is its success in running non-aviation operations – around 57% of TAV's overall sales come from non-aviation revenue such as duty free and food and beverage.
 

Meanwhile, the airport group also announced today that it had officially signed the Build Transfer Operate  (BTO) contract for Medina Airport, in the first airport privatisation of Saudi Arabia.
 

Sani Şener, CEO of TAV Airports, said: “As TAV Airports, we are very much honored to include in our airports portfolio the operation and operation of the Airport of Medina, one of the most significant cities for the Muslim World.”
 

The project will require an investment of approximately $1.5 billion and will include the construction of a new passenger terminal in the first half of 2015. The contract means that TAV Airports will operate the gateway for 25 years.
 

The bid submitted by TAV Airports, with its consortium partners Saudi Oger and the Al Rajhi Holding Group was announced as the best bid on 8 August.
 

TAV Airports said: “we have not made any declaration about this issue” at the time of writing.
 

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