Oct. 10 (Bloomberg) -- Anadolu Cam Sanayii AS rallied the most in four months as the Turkish glassmaker sold property in Istanbul for almost twice the price it had been valued at.
The shares jumped 8.9 percent, the most since June 7, to 2.58 liras at 2:39 p.m. in Istanbul, after earlier surging as much as 10 percent. About 8.6 million securities were traded, almost 23 times the three-month average, data compiled by Bloomberg show. The stock was the second-biggest gainer in percentage terms on the benchmark Borsa Istanbul National 100 Index, which climbed 1.2 percent.
The company sold land in Istanbul’s Zeytinburnu district that it co-owned with parent Turkiye Sise ve Cam Fabrikalari AS for 321.6 million liras ($163 million), according to a bourse filing yesterday. That’s 74 percent more than the appraised value of 184.9 million liras cited in Anadolu Cam’s second-quarter earnings statement. The glassmaker’s share from the deal will be 294.3 million liras, it said yesterday.
“There will be sizable cash flow and the market is repricing the stock,” Ilyas Safa Urganci, an analyst at Is Investment in Istanbul, said by phone. The transaction prompted Urganci to raise his 12-month price estimate for the shares by 11 percent to 3 liras, he said.
Anadolu Cam is down 4.7 percent this year, compared with a 3.7 percent decline in the benchmark stock index. Shares of parent Sisecam, as the company is known, have advanced 5.8 percent in the period. Sisecam owns 79.1 percent of Anadolu, according to company filings.
Anadolu Cam reported second-quarter net income of 18 million liras, down 35 percent from the same period last year. Eleven analysts, including Urganci, recommend buying the shares, while five say hold, data compiled by Bloomberg show.
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