Koc Holding AS (KCHOL), Turkey’s biggest group of companies, dropped the most in three weeks after its chairman said members of the founding Koc family may reconsider selling about 100 million shares.
Koc fell as much as 4.7 percent and was 2.6 percent lower at 11.45 liras as of 12:30 p.m. in Istanbul, the biggest slump since April 18. Almost 7.4 million shares changed hands, about 1.8 times the three-month daily average volume, according to data compiled by Bloomberg.
The company may look into its plan to sell shares “in the coming few months to a year or so,” Chairman Mustafa Koc said in remarks to Bloomberg Television today in Cape Town. Koc family members withdrew their plan to sell a 3.94 percent stake on March 13 because “the environment was not ready for the desired price that we were envisioning to sell,” he said.
A sale of the same stake would be worth about 1.18 billion liras ($660 million) at yesterday’s closing price.
The Borsa Istanbul National 100 (XU100) index fell 76 points, or 0.1 percent, reversing a gain, after Koc’s comments today. Koc Holding, which accounts for 3.7 percent of the gauge, brought the index down by 89 points, data show.
“A stake sale could be through a private placement or a secondary public offering,” Mustafa Kucukmeral, an analyst at Is Investment in Istanbul, said in a phone interview today. “The shares may come to the market directly or indirectly, that’s what creates downward pressure on the price.”
Kucukmeral has a hold recommendation on the stock, with a 12-month price estimate of 10.26 liras. Eight other analysts on Bloomberg recommend buying Koc shares, while 15 say hold and four recommend selling, data compiled by Bloomberg show.
Koc hired Deutsche Bank AG’s London unit as sole manager for the canceled sale in March. Price offers during the accelerated bookbuilding failed to “rise to a satisfactory level,” triggering cancellation of the sale, the family members said in a statement to the bourse on March 13.
The securities were being offered to overseas institutional investors at between 9.50 liras and the market price, according to terms obtained by Bloomberg News.
Koc shares have gained 24 percent this year, outperforming the 16 percent gain on the benchmark index, according to data compiled by Bloomberg.
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