Boyner Buyuk Magazacilik AS jumped the most in almost 3 1/2 years after a ruling from the regulator meant an obligatory purchase of its shares by the parent company will be at a higher price than previously estimated.
The stock rose 12 percent, the biggest advance since March 2010, to 6.64 liras at the close in Istanbul. The number of shares traded was 4.5 times the three-month average, according to data compiled by Bloomberg. The Borsa Istanbul National 100 Index rose 1.2 percent in its first advance in six days.
Altinyildiz Mensucat ve Konfeksiyon Fabrikalari AS, which now owns 60.5 percent of Boyner, is required to retrospectively pay interest on the “tender call,” the Ankara-based Capital Markets Board said after the market closed on Aug. 23. The price it pays to Boyner’s shareholders must also take into account a change in the dollar-lira exchange rate between May 31 when the additional stake in Boyner was bought and the obligatory share-purchase offer, further increasing the outlay as the local currency has depreciated.
“The call price will be higher than Altinyildiz predicted,” creating an “arbitrage opportunity” Serhat Kaya, an analyst at Oyak Securities in Istanbul, said by phone today. The company may “soon” announce the date on which it will make the purchase, he said.
Altinyildiz acquired a 30 percent stake in Boyner for $96.7 million from a unit of Citi Venture Capital International. The move to majority-shareholder status required Altinyildiz to make a mandatory stock-purchase offer to Boyner’s minority shareholders. The purchase price was estimated at about $3.11, equivalent to 5.8 liras, according to a Boyner statement dated June 3.
The Turkish currency has weakened 5.8 percent against the dollar since June 3.
“Assuming the call was made from today’s rates, we calculate a price of 6.8 liras,” Fulin Onder, an analyst at Tera Brokers in Istanbul, said in an e-mail. “But the final price will be set by the exact call date and the currency level at that date.”