Sabanci Expects Minimum $1 Billion Valuation for AvivaSA in Sale

Haci Omer Sabanci Holding AS (SAHOL), Turkey’s second-largest group of companies, said any sale of shares in pensions and life insurance provider AvivaSA Emeklilik & Hayat AS should value the company at a minimum of $1 billion.

“If we don’t get at least $1 billion market value, we won’t offer it to the public,” Haluk Dincer, head of Sabanci’s retail and insurance group, told reporters in Istanbul yesterday.

Sabanci and London-based Aviva Plc (AV/), the U.K.’s second- largest insurer by market value, have agreed in principle to hold the initial public offering, Dincer said. They will sell equal amounts of shares and will evaluate the company’s performance this year to decide on the minimum stake to be sold, he said. Sabanci and Aviva each own 49.8 percent.

An IPO may value AvivaSA at $900 million, Is Invest, Turkey’s biggest broker by trading volume, said yesterday. Sabanci and Aviva may offer 20 percent to 25 percent to the public, Kutlug Doganay, vice president of research at Is Invest, said by phone yesterday.

Sabanci Holding and Aviva plan to sell the stake next year, Sabanci Chairwoman Guler Sabanci said at a news conference in Istanbul yesterday, before Dincer spoke.

Sabanci estimates that AvivaSA made a profit of 44 million liras ($25 million) last year, an increase of 8 percent on 2011, Dincer said. It ranks second among Turkish pension and life insurance providers in terms of funds managed, with 4 billion liras as of Jan. 4, according to the Istanbul-based Pension Monitoring Centre, ran by insurers and the Treasury.

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