French airport operator Aeroports de Paris (ADP) has acquired a 38% stake in Turkish operator TAV Havalimanlari Holding (TAVHL), which operates Ataturk Airport in Istanbul, for $874m.
ADP has acquired the stake from Akfen Holding, Tepe Ðnsaat Sanayi and Sera Yapi Endüstrisi ve Ticaret.
The agreement with TAV (TAVHL) also comprises a separate acquisition of a 49% stake in a construction company, TAV Yatirim Holding, for $49m.
The deal, which is expected to be finalised by 1 July 2012, will bring the operator of Paris Charles de Gaulle airport into alliance with the operator of Istanbul Atatürk airport.
After the deal the two groups will run, directly or indirectly, 37 airports serving about 180 million passengers a year.
It will mainly focus on investing in international airports that serve above 10 million passengers with strong EBITDA growth potential and located in OECD and BRIC countries.
Pierre Graff, Aéroports de Paris chairman and CEO, said: "The partnership with TAV is a major strategic investment for Aéroports de Paris group."
Graff continued: "Fully in line with our international strategy, this transaction will have a strong positive impact on the Group's performance. The high quality of the airport portfolio, in Turkey and abroad, is very attractive, as all airports have been recently built, are best-in-class in terms of quality, and have ample room for growth."
The partnership is expected to allow TAV and Aéroports de Paris group to leverage their respective skills and geographical footprint to increase international developments in particular outside Turkey, to share best practices across their airports and to further grow the asset base.
The investment in TAV will be financed through the existing cash and acquisition debt financing.
Along with Ataturk airport, TAV operates ten airports which include airports in Turkey, Georgia, Macedonia, and Tunisia.