The agreement for sales of Havaş stock for 180 million Euros has become the signature on the trust for TAV Airports and its affiliates.
“We feel greatly honored to realize sales of 35 percent of the shares of Havaş to two partners such as İş Girişim and HSBC Principal Investments. In this period, when there are still discussions of an internation economic crisis, the partnership we have realized reflects the trust felt for our sector and our brand.”
The trigger is pulled on sales of Airports Ground Services (HAVAŞ) owned by TAV Airports Holding.
Complete agreement has been reached between the parties with the partnership agreement signed on 16th October 2009 for the sales of HAVAŞ, for 180 million Euros, to the new company to be founded by TAV Havalimanları Holding A.Ş., (TAV Airports Holding A.Ş.), TAV İşletme Hizmetleri A.Ş., (TAV Operation Services A.Ş.), TAV Bilişim Hizmetleri A.Ş., (TAV Technical Services A.Ş.) HSBC Investment Bank Holdings plc and İş Girişim Sermayesi Yatırım Ortaklığı (Business Venture Capital Investment Partnership).
The particular sales process will be completed after receiving the necessary approvals and permissions from the local authorities. In the final partnership structure of the new company, TAV Airports will have a share of 65 percent, İş Girişim (İş Venture) 6.7 percent and HSBC Principal Investments 28.3 percent.
AN IMPORTANT STEP FOR CREATING RESOURCES
M. Sani Şener, CEO of TAV Airports Holding, emphasizing that they feel greatly honored to realize sales of 35 percent of the shares of Havaş - the first and largest ground services company of Turkey, presently serving 18 airports/airfields - to partners such as İş Girişim (İş Venture) and HSBC Principal Investments, stated that they aim to reduce indebtedness at TAV Airports Holding level and to create additional resources through the share sales. He also added that they think the public offering of Havaş, delayed due to the global economic crisis, can be realized during the coming middle term through the recovery of capital markets.
"AN EXCITING INVESTMENT OPPORTUNITY"
Dr. Ahmet Erelçin, Vice President of the Board of Directors of HSBC Portföy Yönetim A.Ş. (HSBC Portfolio Management A.Ş.) which provided consultancy services to HSBC Principal Investments in this sales process, drawing attention to the fact that Turkey is gradually gaining importance in becoming a regional transportation center, said that they consider the purchase an exciting investment opportunity and added, “The strong growth experienced by the Turkish aviation sector recently, the solid position of Havaş in the sector, the dynamic business model and the regional success achieved by TAV Airports in a short time are among the factors which have affected our investment decision. In light of these considerations, HSBC Principal Investments considers Havaş to be an exciting investment opportunity. We believe that this collaboration, will lead to positive results for both parties.”
Erelçin, stressing that regardless of the global economic crisis, the said purchasing process is an indication of the trust HSBC feels in the Turkish economy, said “The demand for foreign Venture Capital funds, which realized a total investment of 6.6 billion Dollars in Turkish companies in the years 2007-2008, has come to a dead end.We believe that this purchase is also a gratifying development for our country in respect of leading the processes in 2009.”
Murat Özgen, Managing Director of İş Venture Capital, indicating that they have increased the number of investments they have realized so far to 12 companies with the Havaş investment, said “With the Havaş investment, we will have realized two large investments within the last 12 month period during the global crisis, and shown once again the support we give to Turkish companies. Özgen, indicating their happiness in becoming a partner of the most respected ground services company in Turkey, indicated that the country has the role of a bridge between continents and, by means of globalization, will get a larger share from gradually increasing international business volume and tourism. He said, “As can be understood by the successful growth Havaş has achieved under the umbrella of TAV Holding and the numerous international quality awards it has received, it contributes remarkably to the development of the Turkish airline transportation sector. In addition to this added value provided by Havaş, it also assists the Turkish airline transportation sector in shining on the international stage by exporting its expertise and knowledge.”
Özgen stated that, "The Havaş investment we have made in the Turkish airline transportation sector is an indication of the supporting mission of İş Girişim Sermayesi for the Turkish economy and Turkish companies with high development potential. Until now, İş Venture has invested in 11 companies. Whereas many companies encountered turnover and profit losses during the global crisis, the companies we have invested in managed to increase their turnover by 50 percent and their profits by 100 percent on average.” Özgen, expressing that İş Venture is growing together with the companies they have invested in, said that it is a source of great pride to contribute to the success stories of their affiliates.
HSBC Principal Investments
HSBC Principal Investments, its headquarters located in England and operating in the field of venture capital for the last 40 years, realizes its investments through HSBC Investment Bank Holding plc. The total investment portfolio of HSBC Principal Investments, having centers in England, the Middle East, India, Hong-Kong, Latin America and North America, exceeds 11 billion dollars.
HSBC Portföy Yönetim A.Ş. (HSBC Portfolio Management A.Ş.)
HSBC Portföy Yönetim A.Ş. (HSBC Portfolio Management A.Ş.) , established as an affiliate of HSBC Bank A.Ş. in 2005 in Turkey, operates in the fields of fund management, private portfolio management and venture capital investments consultancy.
The sum of the funds managed by HSBC Portfolio exceeds 1.2 billion dollars.
İş Girişim Sermayesi Yatırım Ortaklığı A.Ş. (İş Venture Investment Partnership A.Ş.)
İş Venture Investment Partnership, beginning in 2000 as an indirect affiliate of İş Bank, provides managerial know-how and capital support to companies with high growth potential, as the largest local venture capital in Turkey at present. İş Venture has provided capital contribution of 61 million dollars to 11 companies comprising Probil, ITD, Cinemars, Nevotek, Step Rug, Tüyap, Beyaz Filo, ODE, Ortopro, Türkmed and Frik Medicine, enabling these companies to earn a total of 300 million dollars.
“A net resource of 102 million Euros will be created through share sales.”
NEWSPORT: What is the purpose of the sales of 35 percent of the shares of Havaş by TAV Airports Holding? How much resource will be created for TAV Airports by this sale and how will this resource be utilized?
MURAT ULUĞ: Net resource input will be 102 million Euros. This sale has two purposes; first is to strengthen the partnership and capital structure of Havaş within its growth plan, second is to reduce short term indebtedness by creating additional resources for TAV Airports Holding. TAV is planning to reduce short term loans in 2010.
NEWSPORT: In terms of added value, what will be the contribution of HSBC Investments plc and İş Venture, to which you have affected the sale, to the identity of Havaş? Should a change be expected in the company management?
MURAT ULUĞ: HSBC Investments plc and İş Venture rank among the largest finance corporations of the world and Turkey respectively. Such strong corporations becoming partners of Havaş is an indication of the high status of both the financial and also operational level of Havaş. Furthermore, such a strong capital structure is very important in respect of the growth plans of the company. However, this development will create no change in the operational management of the company. Havaş will go on implementing its business as previously. Of course, with this sale, members of our new partners will also be appointed to the Board of Directors.
NEWSPORT: Can we evaluate the sales as a strategic step taken before the public offering of Havaş?
MURAT ULUĞ: We had already announced the public offering and this intention is still valid. However, market conditions do not allow this yet and we think that these conditions will not come into existence within the following few years. In this respect, you can consider this sale as one of the preparations prior to the public offering of Havaş.
NEWSPORT: Why is the aviation sector more attractive for local and foreign investors? What does TAV Airports promise to the investor?
MURAT ULUĞ: We should not restrict TAV only to aviation; all investments of TAV are infrastructure investments at the same time. In this respect, we promise to our investors in the middle and long term profitable business options that are least vulnerable to crisis (and not vulnerable at all) and that provide healthy cash inflow such as the infrastructure investments. Therefore, as airport operators, we are a little luckier compared especially to the air transportation industry.
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