 'Turkey is an active target for merger and acquisition investors, this is especially so now that financial markets are recovering from the global crisis,' İlhami Koç says. Hürriyet photo |
Investors from India and Egypt are among those considering buying stakes this year in Turkey’s energy, retail, food and drug-making companies, said İlhami Koç, chief executive of İs Yatırım Menkul Değerler.
Istanbul-based İş Yatırım, the country’s biggest broker also known as Is Investment, expects at least $16 billion of mergers and acquisitions this year “on a conservative basis,” compared with $25.8 billion in 2010, Koç said in an interview in Istanbul on Monday. İş Yatırım, which completed merger and acquisition, or M&A, transactions of $1.3 billion as an adviser last year, aims for a 20 percent share of its forecast for M&A deals in 2011, he said.
Turkish assets have lured domestic and international investors as the country’s economy outpaced every member of the Group of 20 nations except for China in 2010. Turkey’s economy grew at an annual rate of 8.9 percent in the first three quarters, and it probably expanded 8 percent in 2010, the International Monetary Fund said. Turkish M&A will fall to around $20 billion this year from an all-time high of $29 billion in 2010, Deloitte Turkey said in a report on Jan. 7.
“Turkey is an active target for M&A investors, this is especially so now that financial markets are recovering from the global crisis,” Koç said. “We have mandates for about 30 planned M&A transactions at the moment. We see interest in Turkish chemicals and mining companies too,” he said.
Turkish companies are also seeking to buy assets abroad, Koç said. “We are advising for a Turkish company in the car parts industry planning to buy a German counterpart,” he said.
“We plan to complete the deal in the first quarter.”
State asset sales including power plants, roads, lottery and Istanbul city’s ferry services and gas grid will dominate M&A activity in Turkey this year, Koç said. “We may also see some Turkish companies buying out assets in neighboring countries,” he said.
“We have mandates to advise on four to five IPOs this year which will bring about $1 billion in share sales,” Koç said. İş Yatırım is advising with Credit Suisse in Pegasus, and with Merrill Lynch, UniCredit SpA and Yapi Kredi Yatırım in Limak offerings, he said.
As many as 30 companies may sell shares to public in 2011 and that may triple income from IPOs in 2011 to 10 billion liras ($6.5 billion), said Halil Eroğlu, chairman of the Istanbul-based association Koteder representing traded companies on the Istanbul Stock Exchange, on Dec. 30. Companies raised a total of 3.1 billion liras from 22 share sales to public in 2010, including initial and secondary offerings, Eroğlu said.
Parliamentary elections due June 12 will not hamper the companies’ IPO plans, Koç said, because “the shared expectation among investors is that the ruling AK Party will continue as a single-party government.”
Koç foresees that Turkey will be raised to investment grade by international rating companies this year. “It may happen before the elections,” he said. Standard & Poor’s and Moody’s rate Turkey’s long term foreign currency debt at BB and Ba2 respectively, two notches below the investment grade. Fitch’s rating of BB+ is one notch below.
İş Yatırım recommends Yapı Kredi Bank, Anadolu Hayat Emeklilik, Doğuş Otomotiv, Koza Altın, Enka, Turkish Airlines among others as its top buy picks for 2011, Koç said.
Turkey’s capital markets regulator is expected to pass a legislation soon to monitor foreign exchange transactions over the Internet, Koç said. İş Yatırım plans to take part in such deals once the regulation takes effect, he said.
Is Yatırım will also set up a company, called Efes Varlık Yönetim, this year to buy non-performing loan portfolios from banks to manage them, Koç said.
Istanbul-based İş Yatırım, the country’s biggest broker also known as Is Investment, expects at least $16 billion of mergers and acquisitions this year “on a conservative basis,” compared with $25.8 billion in 2010, Koç said in an interview in Istanbul on Monday. İş Yatırım, which completed merger and acquisition, or M&A, transactions of $1.3 billion as an adviser last year, aims for a 20 percent share of its forecast for M&A deals in 2011, he said.
Turkish assets have lured domestic and international investors as the country’s economy outpaced every member of the Group of 20 nations except for China in 2010. Turkey’s economy grew at an annual rate of 8.9 percent in the first three quarters, and it probably expanded 8 percent in 2010, the International Monetary Fund said. Turkish M&A will fall to around $20 billion this year from an all-time high of $29 billion in 2010, Deloitte Turkey said in a report on Jan. 7.
“Turkey is an active target for M&A investors, this is especially so now that financial markets are recovering from the global crisis,” Koç said. “We have mandates for about 30 planned M&A transactions at the moment. We see interest in Turkish chemicals and mining companies too,” he said.
Turkish companies are also seeking to buy assets abroad, Koç said. “We are advising for a Turkish company in the car parts industry planning to buy a German counterpart,” he said.
“We plan to complete the deal in the first quarter.”
State asset sales including power plants, roads, lottery and Istanbul city’s ferry services and gas grid will dominate M&A activity in Turkey this year, Koç said. “We may also see some Turkish companies buying out assets in neighboring countries,” he said.
Initial public offerings
Revenue from initial share offerings by Turkish companies will reach “at least” 2010 levels, Koc said. Pegasus Airlines, a low-cost Turkish carrier, and a unit of Turkish builder Limak İnşaat are among companies that plan share sales in the first half of this year, Koç said. Global Liman İşletmeleri, a port operator, is also slated for an IPO this year, he said.“We have mandates to advise on four to five IPOs this year which will bring about $1 billion in share sales,” Koç said. İş Yatırım is advising with Credit Suisse in Pegasus, and with Merrill Lynch, UniCredit SpA and Yapi Kredi Yatırım in Limak offerings, he said.
As many as 30 companies may sell shares to public in 2011 and that may triple income from IPOs in 2011 to 10 billion liras ($6.5 billion), said Halil Eroğlu, chairman of the Istanbul-based association Koteder representing traded companies on the Istanbul Stock Exchange, on Dec. 30. Companies raised a total of 3.1 billion liras from 22 share sales to public in 2010, including initial and secondary offerings, Eroğlu said.
Parliamentary elections due June 12 will not hamper the companies’ IPO plans, Koç said, because “the shared expectation among investors is that the ruling AK Party will continue as a single-party government.”
Koç foresees that Turkey will be raised to investment grade by international rating companies this year. “It may happen before the elections,” he said. Standard & Poor’s and Moody’s rate Turkey’s long term foreign currency debt at BB and Ba2 respectively, two notches below the investment grade. Fitch’s rating of BB+ is one notch below.
Bond sales
İş Yatırım, which advised on bond sales by six companies last year, aims to expand these services, Koç said. It is currently advising on a 1 billion-lira local bond sale by Turkey’s İş Bank, which owns İş Yatırım, Koç said.İş Yatırım recommends Yapı Kredi Bank, Anadolu Hayat Emeklilik, Doğuş Otomotiv, Koza Altın, Enka, Turkish Airlines among others as its top buy picks for 2011, Koç said.
Turkey’s capital markets regulator is expected to pass a legislation soon to monitor foreign exchange transactions over the Internet, Koç said. İş Yatırım plans to take part in such deals once the regulation takes effect, he said.
Is Yatırım will also set up a company, called Efes Varlık Yönetim, this year to buy non-performing loan portfolios from banks to manage them, Koç said.
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