Industrials | Turkey
WSD Target Price
Annualized Return Since Publication
Target Equity Value (Δ)
Source: Bloomberg end of day market data; not adjusted for dividends (December 1, 2015).
Returns assume a long investment position on the date that WSD Capital Management published its thesis, and an exit on the date that the WSD Target Price is realized.
Returns do not reflect any fees, expenses or taxes.
The returns are hypothetical and do not reflect the actual results of WSD Capital Management’s investment activities, nor is it necessarily indicative of future results of WSD Capital Management’s investment activities.
Akfen Holding (“Akfen”) is one of the largest industrial conglomerates in Turkey. The company operates in the field of infrastructure investment, project management, development, operation, and construction.
Despite favorable business characteristics and compelling growth prospects, the industrial conglomerate underperformed both its peer group and the broader stock market since its initial public offering in 2010. WSD Capital Management announced its engagement in Akfen on February 16, 2015. Following the announcement, the industrial conglomerate outperformed the BIST 100 Index by 151 percentage points over the next 12 months despite challenging market conditions.
We engaged by focusing on strategic initiatives to enhance the company’s long-term shareholder value and eliminate barriers to price discovery. During the period in which WSD Capital Management was invested in Akfen, the company’s management adopted significant operational and capital allocation improvements in strategy and execution.
On April 29, 2016, Akfen was taken private and delisted its common stock from the Borsa Istanbul Stock Market.