Istanbul airport owners withdraw plans to sell stakes

1 October 2019 (Last Updated October 1st, 2019 12:47)

The owners of Istanbul Airport in Turkey have dropped plans to sell stakes in the $11bn facility.

Istanbul airport owners withdraw plans to sell stakes
This airport is located 20 miles outside of Istanbul. Credit: Elgaard

The owners of Istanbul Airport in Turkey have dropped plans to sell stakes in the $11bn facility.

Turkish construction companies Cengiz Insaat, Limak Holding, Mapa Insaat, Kalyon Insaat and Kolin Insaat secured the rights to build and operate the airport. Each company originally held equal stakes.

In May, American investment bank Lazard was hired to offer a valuation of the airport and hold talks with potential buyers.

According to a Bloomberg media report, the construction firms have now cancelled the mandate awarded to Lazard.

Vinci, Ferrovial SA, Aeroports de Paris and its Turkish unit TAV Havaliamanlari Holding were reported to be among the interested parties.

One person with knowledge of the matter told Bloomberg that it was too early to sell a stake in the consortium, IGA Havalimani Isletmeleri. The airport started operations in April this year.

Kalyon Insaat currently owns a 35% stake, while Cengiz Insaat has a 25% holding after Kolin Insaat divested its 20% stake this year. Limak and Mapa both have 20% stakes in the airport.

Lazard and IGA have not commented on the matter.

It is speculated that the owners have changed their plans due to an uncertainty that the group could interest buyers, as the cost is estimated to be €22.1bn for the 25-year lease.

IGA has a large debt load in Turkey after it borrowed €5.7bn for the construction of the airport.

Istanbul Airport, also referred to as Istanbul Grand Airport, is located approximately 35km outside of Istanbul, between the residential areas of Yenikoy and Akpınar along the Black Sea coast.