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Akfen Climbs After Unit Wins $400 Million Tender: Istanbul Mover

Akfen Holding AS (AKFEN), a Turkish group with diversified interests including port operations, energy and real estate, climbed the most in more than two weeks after its airport construction unit won a $400 million project.

The shares rose 1.9 percent to 5.30 liras at the close in Istanbul, the biggest advance since April 29. More than a million shares traded, almost 70 percent of the stock’s three-month average daily volume, according to data compiled by Bloomberg. The Borsa Istanbul National 100 index added 1.7 percent to a record 91,287.14.

Tav Tepe Akfen Yatirim Insaat ve Isletme AS, in which Akfen has a 21.7 percent stake, won a tender to design and construct a terminal of the King Khaled Airport in Riyadh, Saudi Arabia, according to a statement e-mailed today. The win comes less than two weeks after TAV Havalimanlari Holding AS (TAVHL), in which Akfen has an 8.12 percent stake, withdrew from an auction to build and operate a new airport in Istanbul.

“This signals that Akfen will remain a strong player in airport construction,” Mustafa Kucukmeral, an analyst at Is Investment in Istanbul, said in a phone interview. “It is good news for the shares.”

TAV Withdrawal

A group consisting of five closely held constructors submitted a winning bid to pay Turkey’s government a rental fee of 22.1 billion euros ($29 billion) over a period of 25 years in a May 3 auction for the planned third airport in Turkey’s biggest city. TAV withdrew before the final round of bidding, sending its shares tumbling 7.8 percent that day.

The King Khaled project adds to TAV Insaat’s project backlog of $12.7 billion as of the end of February, according to company documents. TAV Insaat is the world’s fourth-biggest airport constructor as of the end of 2012, Akfen said on its website.

Akfen may report net income of 8.5 million liras ($4.7 million) for the first quarter, down from 42.5 million liras in the same period last year, according to the average estimate of four analysts surveyed by Bloomberg. Eleven analysts recommend buying the shares, while one says hold, according to data compiled by Bloomberg.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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