TAV Airports Holding hopes that its new stakeholder, Aéroports de Paris Management (ADPM), will provide it with the expertise it needs to add to its airport portfolio outside of its favoured Middle East, North Africa and CIS regions.
ADPM – a wholly owned subsidiary of Aéroports de Paris (ADP) – today agreed to pay $874 million for a 38% stake in the Turkish based airport operator.
The transaction values TAV Airports Holding’s equity at $2.3 billion.
Talking about the then unamed new investor at last week’s Airport Economics & Finance Conference in London, TAV’s chief strategy officer, Waleed Youssef, said: “Our new strategic partner can add geographic depth to our operation as, up until now, our focus has primarily been on emerging markets in the Middle East, North Africa and former CIS states.
“Hopefully with a new partner, we will have the appetite to grow geographically as well as strengthen our balance sheet.”
TAV said ADP’s investment “fits perfectly” with its international strategy of investing in international airports serving above 10 million passengers with strong EBITDA growth potential and located in OECD and BRIC countries.
For its part, ADP said it expects to achieve double-digit returns on equity from the deal, which it will finance using existing cash and already secured acquisition debt financing.
TAV Airports CEO and president, Sani Şener (pictured above), said: “We believe that our brand, which was born out of the privatisation of Istanbul Atatürk International Airport and which we expanded to 12 airports in five countries in just 12 years, will be able to target even more ambitious goals through the collaboration we have realised with Aéroports de Paris, one of world’s leading airport operators.
“The partnership of these two global airport brands in managing and building airports will result in the extensive know-how stemming from the operation of 37 airports serving 180 million passengers around the world.
“We have brushed shoulders in the past with ADP all around the world, sometimes as a partner and sometimes as a competitor. We know each other very well in the aviation industry.
“Aéroports de Paris is at the moment the firm managing the projects at Muscat and Tripoli airports. We have also worked together at the Emirates A380 aircraft hangars project for Dubai Airports.
"We are sure that this collaboration will further enhance the success we have gained as a Turkish firm and will lay new growth opportunities before us. We will continue to work towards creating the best value for all our stakeholders, especially for our employees and our customers.
“As TAV, we have always aimed at becoming the best. Today, we have sealed a great strategic partnership to this effect. Our collaboration with ADP will also be a source of major capital inflow to Turkey hence we will be able to pursue our dreams and targets one step further."
Pierre Graff, chairman and CEO of ADP, added: “The partnership with TAV is a major strategic investment for Aéroports de Paris group. Fully in line with our international strategy, this transaction will have a strong positive impact on the Group’s performance.
“The combination will become a leading worldwide airport operator group, with a long lasting growth perspective. TAV is a high performing airport operator with a talented management, which has achieved continuous growth and impressive results in the past few years.”
It has been a busy start to 2011 for ADP, which has also just won the concession to operate and develop Zagreb Airport in Croatia.