Buy - Sell

·         VAKBN (BUY, TP TL5.33) > VABNK’s SPO would come onto the govt’s agenda following the transfer of the bank’s shares from the foundations to the Treasury (expected to take a few months) and would precede Ziraat Bank’s IPO, according to daily Hurriyet citing Deputy PM Babacan’s comments to investors in London yesterday. Babacan added that they are not in a hurry with these privatisation and would watch for market conditions. As VAKBN is currently trading at 0.9x 2013E BV with an ROE of 11% in the past couple of quarters, we believe significant efforts would be made to improve the bank’s profitability and raise its value above book before a sale could take place.

 

·         TCELL (BUY; TP: TL 12.17): Kcell, TCELL’s mobile operator in Kazakhstan via Fintur, has announced admission of its GDRs at the London Stock Exchange. Following the recent IPO, Telia Sonera’s stake fell to 24% (from 49%), while Fintur (in which TCELL holds 41.5% stake) continues to hold 51%. The IPO values Kcell at $2.1bn where TCELL’s effective stake corresponds to c$445m. Note that we attach a $1.67bn value for the Fintur stake in our valuation & Kcell IPO does not suggest any upside. We maintain our val which implies ca.11x earnings multiple on earnings contribution from Fintur.

 

·         TTKOM (BUY; TP: TL7.46): Privatization Admin says there is no formal decision re the time-frame & methodology of TTKOM’s privatization as a response to yesterday’s news re an SPO in Feb’13.

 

·         ANACM (NR): will acquire 24.075% stake in Anadolu Cam Investment B.V (investment vehicle for OOO Ruscam => Russian subsidiary) for $14.9m; incr’g its stake to 75.9%.

 

·         AKSEN (HOLD; TP: TL3.73): Kazanci Holding purchased 237,023 shares of Aksa Enerji at a price range of TRY4.01-4.06/share. The Company’s stake in Aksa increased by 0.04% to 94.56%.