France's ADP to buy additional stake in Turkey's TAV Airports for $160 million, eyeing expansion in new markets

Turkey's Akfen has said it signed an agreement on June 9 to sell its remaining 8.12 percent stake in TAV Airports to France's Aeroports de Paris (ADP) for $160 million. 

The French company plans to expand into new markets in the Middle East, Central Asia, Europe and Africa as well as new areas within Turkey along with TAV, according to company representatives. 

After the stakes are transferred to ADP, its stake in Turkish airport operator TAV Airports will increase to 46 percent.

ADP, operator of the Charles De Gaulle and Orly airports in the Paris region, is already TAV Airports' largest shareholder with a 38 percent stake. 

The Turkey-based Akfen Holding, which is the second largest shareholder in TAV Airports after ADP, plans to use the revenue from the stake sale to contribute to a 6.7 billion liras ($1.9 billion) investment program in Turkey focused on hospitals and energy projects, it said in a statement to the Public Disclosure Platform (KAP). 

Akfen Holding and TAV Airports Chair said TAV Airports will remain a Turkish company, with its listing in Istanbul, in a separate written statement. 

Tepe Construction is the third largest shareholder in TAV Airports, followed by Sera Yapı. 

Tepe and Sera expressed support for the transaction, ADP said.

ADP expects the transaction to complete during the summer of 2017, after which it will fully consolidates TAV Airports in its financial statements.

The transaction values TAV Airports' equity at around $2 billion or 19.2 Turkish liras per share, Reuters reported. 

TAV Airports shares were up 3.2 percent early June 9, following the respective announcements. 

New markets within scope

ADP...